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

CRD IV for Investment Firms
CP13/6
Table 14: Categorisation of investment firms subject to CRD IV
Firm primary category
Fullscope
Firm status
Limited
Activity
Limited
License
Total
by firm
category
Discretionary Investment Manager 20 5 1440 1465
Advising and Arranging Intermediary
(exc. FA & Stockbroker)
21 3 229 253
Stockbroker 62 11 85 158
Corporate Finance Firm 14 1 118 133
Financial Adviser (FA) 3 102 105
Other 81 23 218 322
Total by firm status 201 43 2192 2436
14. We estimate that circa 1,000 11 of these 2,400 firms will not be subject to CRD IV. The FCA is
consulting on exercising the discretion under article 95(2) in the Regulation that allows the CA
to keep such firms on the current CRD, as it stood under national law (i.e. BIPRU and GENPRU)
on 31 December 2013. Details on the type of firms affected – under the revised proposed term
of ‘BIPRU firms’ – and the extent of our proposals can be found in Chapter 6.
15. In general, the application of our proposals means no overall change in costs or benefits for
these firms since we would be keeping the ‘status quo’ subject to the outcome of the EU wide
review of the whole prudential regime for investment firms by 31 December 2015.
Proposed regulatory changes
16. In summary the main changes introduced by CRDIV are:
• the improved quantity and quality of capital that firms’ are required to hold;
• the introduction of capital buffers;
• governance arrangements;
• new reporting framework (COREP/FINREP);
• liquidity requirements and liquidity reporting.
11 Various proxies have been used to estimate the firms that will fall under the discretion in article 95(2). The number presented here
should be treated as an estimate since we do not directly record firm’s MIFID activities. We believe that the figure reported here is
likely to be a high-end estimate of the exempted population.
Financial Conduct Authority July 2013
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