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

CRD IV for Investment Firms
CP13/6
6.11 These proposals amount to keeping the ‘status quo’ pending the Commission’s review of an
appropriate prudential regime for firms in the investment sector by end 2015 which is the
proper place to secure a more permanent ‘level playing field’ across the EU.
Applicable provisions from the FCA Handbook
Table 11: It shows the relevant Sourcebooks and chapters from the FCA Handbook
that would be applicable to BIPRU firms as a result of our proposals:
Sourcebook
GENPRU
BIPRU
SYSC
Applicable Chapters
1, 2 and 3 (and relevant transitionals)
1 to 5, 7 to 9, 11, 13 and 14 (and relevant transitionals). 12 (firms need
to check the relevant application provisions)
Firms need to check the application provision of the relevant chapter
Existing waivers
6.12 Any existing waivers under GENPRU and BIPRU for these firms would continue to be in effect
after 1 January 2014 since the rules would continue to apply.
Reporting
6.13 Under our proposals BIPRU firms would continue using GABRIEL to submit FSA0xx reporting
templates because COREP and FINREP are designed to report on CRD IV elements.
Firm impact
6.14 We estimate that approximately 1000 firms could benefit from our proposals in this chapter.
6.15 Applying our proposals mean no overall change in costs or benefits for BIPRU firms since we
would be keeping the ‘status quo’ subject to the outcome of the EU wide review of the whole
prudential regime by 2015.
6.16 We believe our pre-consultation discussions indicated initial support for these proposals, as
they avoid the cost of changes for all concerned, while maintaining protection for consumers
and market integrity, pending the EU-wide review. Under these proposals firms would not
need to implement unnecessary changes to systems and capital that otherwise they might have
had to undo in a few years time – depending on the outcome of the EU review.
6.17 There is a further consequence of the change to the definition of ‘investment firm’ in article
4.1(2)(c) outlined above in paragraph 6.3, which may impact some existing firms that currently
benefit from being treated as ‘exempt CAD firms’ in our current Handbook. This is where a firm
carries out only MIFID services and activities (1) reception and transmission of orders in relation
to one or more financial instruments and/or (5) investment advice (but not (2) execution of
orders on behalf of clients and/or (4) portfolio management).
Financial Conduct Authority July 2013
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