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

CRD IV for Investment Firms
CP13/6
7.
Treatment of existing FCA rule waivers under
the Regulation
Introduction
7.1 This chapter sets out the FCA’s proposals in relation to the treatment under the CRR of rule
waivers and modifications granted to firms in accordance with section 138A of FSMA. Rule
waivers and modifications will be jointly referred to in this Chapter as ‘waivers’.
7.2 The PRA is also consulting on similar proposals in relation to waivers that affect their firm
population.
Background
7.3 As explained in Chapter 1 of this CP, the FCA will make a new sourcebook IFPRU that transposes
the relevant directive provisions and implements the discretions afforded to competent
authorities in the CRR. It will apply to the investment firms subject to CRD IV that are presently
subject to GENPRU and BIPRU with the effect that GENPRU and BIPRU will no longer apply to
these firms.
7.4 As a result, all waivers granted to investment firms subject to CRD under BIPRU and GENPRU
rules will cease to have effect by operation of law. However, where those rules are replaced
by substantially equivalent requirements in the CRR, the FCA will have the power to grant an
equivalent permission when exercising a national discretion given to it as a ‘competent authority’.
7.5 It is important to note that the proposals in this chapter do not apply to waivers granted to
‘BIPRU firms’ (see Chapter 6 of this CP under the heading ‘Existing waivers’).
Our proposals
7.6 Accordingly, the FCA proposes to grant such CRR-based permissions with effect from 1 January
2014 to those firms which are currently holding an eligible waiver. A waiver will be eligible only
if it meets the following conditions:
• first, the relevant waiver must relate to a rule in GENPRU / BIPRU with an equivalent article
in the CRR. Waivers with equivalent CRR articles are shown in the second column of tables
12 and 13 below 11 ;
11 The lists of existing waivers included under each proposal are based on all the waivers that historically the FSA granted under
GENPRU and/or BIPRU to the whole CRD firm population and may include some treatments that are no longer available for the
current FCA population of firms.
Financial Conduct Authority July 2013
53