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

CP13/6
CRD IV for Investment Firms
• second, the firm holding a waiver must be fully compliant with the GENPRU/ BIPRU rule,
as waived or modified, and with any conditions relevant to the granting of the waiver (as
such may be reflected on the direction given to the firm) on and before 31 December 2013.
Compliance with the GENPRU / BIPRU rule will tend to show compliance with the equivalent
CRR article, although specified requirements and conditions will apply to different types of
waivers. This is explained further below.
7.7 Waiver directions that remain in effect as equivalent CRR-based permissions in accordance
with this Chapter on 1 January 2014 will continue in full force and effect until the expiry
date specified thereto. The Financial Services Register will be updated progressively as waivers
directions expire and are replaced CRR-based permissions upon application for renewal.
7.8 Our proposals in this Chapter would also apply to relevant requirements imposed by the FCA on
firms under section 55L of FSMA in relation to a rule listed in the second column of table 12, subject
to the same conditions and processes – as appropriate – described for waivers in this Chapter.
7.9 The legal instrument underpinning these arrangements may change following consultation
with the Treasury, but we expect that the substance of our proposals as described in this
chapter will remain the same.
7.10 Our proposals in this area vary depending on the type of waivers:
Eligible waivers not related to an advanced prudential calculation approach
7.11 Where a firm currently holds an eligible waiver specified in table 12, it may rely on the existing
direction as the equivalent permission under the CRR with effect from 1 January 2014:
Table 12: Eligible waivers not related to an advanced prudential calculation approach
Permission FCA Rule (rule waiver or modification) CRR article
Individual consolidation
method
Derogation to the
application of own
funds requirements on
a consolidated basis for
groups of investment firms
Methods of prudential
consolidation – Art. 12(1)
relationship
Methods of prudential
consolidation- Significant
influence or single
management relationship
Entities excluded from
the scope of prudential
consolidation
• BIPRU 2.1.7R
• (Solo consolidation waivers)
• BIPRU 8.4 applies to a firm with an investment
firm consolidation waiver
• Rules waived:
a. BIPRU 8.2.1R
b. BIPRU 8.2.2R
c. BIPRU 8.3.1R
d. BIPRU 8.3.2R
• BIPRU 8.5.6(2)R
(As required by the Part 4A permission of the
firm)
• BIPRU 8.5.6(2)R – ‘Art. 134 relationship’
(as required by the Part 4A permission of the
firm)
• BIPRU 8.5.1R
• BIPRU 8.5.10R
Art. 9
Art. 15
Art. 17
Art. 18.3
Art. 18.6
Art. 19.2
54 July 2013
Financial Conduct Authority