CP13/6 - CRD IV for Investment Firms - Financial Conduct Authority

CP13/6
CRD IV for Investment Firms
Regulated markets and third country stock exchanges
4.44 Under article 336(4)(a)(iii) of the CRR, certain qualifying items should meet certain conditions
one of which is that they should be listed on a Member State regulated market (see Article
4(1)(92) of the Regulation) 10 , or on a stock exchange of a third country recognised by the FCA.
4.45 Based on the same approach for recognised exchanges in paragraph 4.43 (and subject to the
same conditions), firms are invited to propose to the FCA for recognition those third country
stock exchanges where the qualifying items are listed.
Q18: Do you agree with our proposal for an interim list of
recognised exchanges pending the ESMA ITSs including
our approach for third country stock exchanges? If
not please propose changes to the list explaining the
rationale why.
Financial reporting: FINREP
4.46 Article 99(6) of the CRR allows the FCA to consider extending the scope of IFPRU investment
firms subject to FINREP (beyond those firms mandated to submit FINREP templates under
Article 99(2)) if the FCA believes that this is necessary to obtain a comprehensive view of the
risk profile of the activities of, and a view of the systemic risks to the financial sector or the real
economy posed by these firms.
4.47 The FCA will adopt the discretion in article 99(6) of the Regulation, but in line with our
pragmatic and proportionate approach to CRD IV transposition, this does not imply that we
intend to automatically implement this discretion. The nature of this CA discretion is such that
by adopting it we are retaining an option to determine if we need to extend the scope of
FINREP in the future. In practice, for the FCA to introduce this discretion, we would first have
to consult with the EBA on extending the scope of IFPRU investment firms subject to FINREP.
Q19: Do you agree that this approach in relation to the
discretion in article 99 of the Regulation is proportionate
and risk based? If not, please explain why not and propose
alternative approaches and the rationale for those
approaches.
Simplified credit risk calculation
4.48 The CRR does not permit the simplified method of calculating credit risk weights in relation to
credit risk which is currently permitted in BIPRU 3.5. Accordingly, IFPRU firms should note that
they will no longer be able to use this method.
10 This corresponds to the list of regulated markets prepared by ESMA that is available at ESMA List of regulated markets.
40 July 2013
Financial Conduct Authority