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

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CP13/6 CRD IV for Investment Firms 7.14 The FCA has already started contacting firms holding eligible advanced prudential calculation approaches waivers to inform them of the steps that will be followed ahead of the entry into force of the CRR. In short, the process will be as follows: • first, the affected firms will have to submit to the FCA a confirmation of compliance in relation to each relevant waiver by no later than 31 August 2013, unless they have done so already; • at the same time, if the FCA has identified any instances of non-compliance, it will require those firms to remediate them before the end of 2013 or to put in place a credible remediation plan where compliance cannot be fully restored within this time period; and • the FCA expects to review the responses and engage in bilateral discussions with the affected firms during the Autumn. By no later than 30 November 2013, the FCA will notify its decision to the affected firms on whether they may rely on the existing waiver direction as the equivalent permission under the CRR with effect from 1 January 2014 and, if so: –– whether it will be subject to the same terms; or –– the permission will be subject to certain modified terms. Among these, the FCA may decide to exclude certain models, exposures or products from the scope due to the firm being unable to restore compliance before the end of 2013. As an alternative, the FCA may add an agreed remediation plan as a condition for the firm to maintain certain models, exposures or products within scope. BIPRU 12 intra-group modification 7.15 As permitted under Article 412(5) of the Regulation, we intend to maintain the existing domestic liquidity regime until binding minimum standards for liquidity coverage requirements are specified and fully introduced in the CRR in 2015 (see our proposals in Chapter 4). 7.16 Therefore, where a firm holds an ‘intra-group liquidity modification’ to the overall liquidity adequacy rule in BIPRU 12, it should engage with its FCA supervisory contact on a bilateral basis to determine whether the existing waiver can be extended until the discretion in Article 412(5) of the Regulation falls away in 2015. Any firm requests for liquidity permissions under the CRR will be covered by the process for new CRR permissions. Existing waivers where there is no equivalent CRR provision 7.17 Any waivers granted to firms under BIPRU or GENPRU rules which are repealed or disapplied on 1 January 2014 and not otherwise listed as eligible waivers in tables 12 and 13 will cease to have effect on that date. 7.18 The FCA will update the Financial Services Register and communicate this to firms in due course. Processes for new CRR permissions 7.19 We are also working to have in place new processes to grant firms’ regulatory ‘permission’ in those areas under CRD IV where they will be required. For this purpose we have also engaged with the Treasury (and the PRA) to ensure that suitable procedures to be applied to the new CRR permissions are in place. 7.20 We will communicate the new procedures to firms later in 2013. 58 July 2013 Financial Conduct Authority
CRD IV for Investment Firms CP13/6 Q27: Do you agree to our proposal to grant CRR-based permissions with effect from 1 January 2014 to those firms currently holding an eligible waiver related to a GENPRU / BIPRU rule – listed in tables 12 and 13 – provided the conditions in paragraph 7.6 are met? If not please explain why not and propose alternative approaches and the rationale for those approaches. Financial Conduct Authority July 2013 59
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Financial Conduct Authority Consult
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We are asking for comments on this
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CP13/6 CRD IV for Investment Firms
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CP13/6 CRD IV for Investment Firms
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FCA 2013/xx (b) (c) sudden and seve
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FCA 2013/xx between each firm which
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FCA 2013/xx in a number of risk cat
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FCA 2013/xx Capital planning 2.2.73
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FCA 2013/xx approving and actioning
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FCA 2013/xx activities (IFPRU 2.2.1
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FCA 2013/xx suggested. 2.3.17 G The
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FCA 2013/xx (3) what plan is in pla
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FCA 2013/xx 2.3.35 G For a firm tha
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FCA 2013/xx (1) a failure by a firm
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FCA 2013/xx single counterparty; (b
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FCA 2013/xx (4) that it has in plac
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FCA 2013/xx that firm. Calculation
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FCA 2013/xx 3.2.8 R A firm must dem
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FCA 2013/xx 126(2), 178(1)(b), 243(
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FCA 2013/xx (1) whether there is an
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FCA 2013/xx 4.3.8 G A significant I
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FCA 2013/xx set out but are outside
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FCA 2013/xx requirements in article
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FCA 2013/xx standards for data qual
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FCA 2013/xx Definition of default:
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FCA 2013/xx Variable scalar conside
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FCA 2013/xx Data considerations 4.3
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FCA 2013/xx (b) (c) (eg, external a
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FCA 2013/xx will allow such cures t
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FCA 2013/xx and not be based purely
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FCA 2013/xx downturn conditions, a
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FCA 2013/xx Direct estimates of EAD
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FCA 2013/xx Netting 4.3.119 G For c
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FCA 2013/xx 4.3.131 G As with all a
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FCA 2013/xx Low default portfolios
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FCA 2013/xx Other requirements 4.3.
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FCA 2013/xx 4.4.4 G A firm should n
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FCA 2013/xx significant risk transf
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FCA 2013/xx risk transfer notificat
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FCA 2013/xx EU CRR) should be revie
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FCA 2013/xx being recognised or the
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FCA 2013/xx with traded debt instru
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FCA 2013/xx Duration of the credit
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FCA 2013/xx Track record and financ
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FCA 2013/xx complete and stabilised
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FCA 2013/xx market asset when it co
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FCA 2013/xx 6.2.3 G Futures, forwar
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FCA 2013/xx (b) (c) equal to a frac
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FCA 2013/xx shifts for both VaR and
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FCA 2013/xx the financial situation
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FCA 2013/xx consolidated situation
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FCA 2013/xx Calculation of counterc
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FCA 2013/xx connection with common
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FCA 2013/xx [9.7 Exemptions 9.7.1 G
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FCA 2013/xx Permission 1 Internal R
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FCA 2013/xx consolidated basis for
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FCA 2013/xx 15 Own funds requiremen
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FCA 2013/xx 3.4 R For the purposes
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FCA 2013/xx (4) 40% for the period
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FCA 2013/xx (3) 0.6 during the peri
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FCA 2013/xx IFPRU 9.3 (Countercycli
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FCA 2013/xx 3.2.6R enter into a con
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FCA 2013/xx group members in excess
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FCA 2013/xx FCA to grant a waiver t
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FCA 2013/xx consolidated basis cons
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FCA 2013/xx that is not excluded un
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FCA 2013/xx third country countercy
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FCA 2013/xx purpose of BIPRU 10 (La
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FCA 2013/xx (ii) any private or pub
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FCA 2013/xx EEA prudential sectoral
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FCA 2013/xx financial instrument (1
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FCA 2013/xx (2) (in accordance with
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FCA 2013/xx basis under Article 73(
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FCA 2013/xx 2.3 (Supervisory review
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FCA 2013/xx Annex C Amendments to t
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FCA 2013/xx CAPITAL REQUIREMENTS DI
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FCA 2013/xx 1.3 Valuation … … P
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FCA 2013/xx … Calculation of the
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FCA 2013/xx The table in GENPRU 2.1
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FCA 2013/xx ... … 2.2.220R; GENPR
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FCA 2013/xx … Limits on the use o
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FCA 2013/xx Core tier one capital:
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FCA 2013/xx GENPRU 2.2.174R GENPRU
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FCA 2013/xx Disclosure: Operational
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[Note: article 91(3) of the CRD] FC
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PART A: INTRODUCTION & INTERPRETATI
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Table 1: Glossary of terms defined
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PART C: LEVELS PROCESS FOR DIVIDING
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solo Remuneration Code firm. (2) Wh
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Disapplication of certain remunerat
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(5) Sub-paragraph (6) applies where
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APPENDIX 1: SUPPLEMENTAL GUIDANCE O
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This document has no legal effect a
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GENERAL GUIDANCE ON PROPORTIONALITY
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PART A: INTRODUCTION & INTERPRETATI
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Table 1: Defined expression group G
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proportionality rule. Part-year Rem
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(d) The rule on guaranteed variable
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APPENDIX 1: PILLAR 3 DISCLOSURE REQ
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CP13/6 - CRD IV for Investment Firms - Financial Conduct Authority

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