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

CRD IV for Investment Firms
CP13/6
CRR
article
FCA
Handbook
reference –
if existing
discretion
Area of national discretion
Does the
FCA intend
to exercise
the relevant
discretion from
1 January 2014?
28(1)
(f)(ii),
77 and
78
GENPRU
2.2.64R
GENRU
2.2.80R
GENPRU
2.2.83R (4)
GENPRU
2.2.83AR
GENPRU
2.2.83BR
GENPRU
2.2.83CR
GENPRU
2.2.83DG
GENPRU
2.2.85R (3)
and part of
2.2.85R(1)
GENPRU
2.2.86R -
101R
FCA may give a direction to a firm to allow it to
repurchase CET1 instruments in accordance with art 28
(1)(f)(ii).
Yes
36, 56
and
66
GENPRU
2.2.219R
FCA may set out what it considers to constitute
direct, indirect or synthetic holdings which have been
designed to inflate the own funds of the institution.
Yes
41(1)
(b)
FCA may give a direction to a firm to allow it to reduce
the amount of defined benefit pension fund assets that
it must deduct from CET1 resources in accordance with
art. 41(1)(b).
Yes
49(1) FCA may give permission to a firm not to deduct
holdings in insurance undertakings for the purpose of
calculating capital requirements on a standalone basis.
49(2) FCA may require firms to deduct holdings in ‘financial
sector entities’ for the purposes of supervision on a
standalone or sub consolidated basis.
49(3) FCA may give a direction to exempt a firm from the
obligation to deduct holdings in ‘financial sector
entities’ where the institutions fall within the same
institutional protection scheme referred to in art 113(7)
and the remaining conditions thereto are met.
No
No
No
73 GENPRU
2.2.64R(4)
(b)(i)
76(1)
(d)
FCA may allow capital instruments for which an
institution has the sole discretion to decide to pay
distributions in a form other than cash or an own
funds instrument to qualify as Common Equity Tier 1,
Additional Tier 1 or Tier 2 instruments, providing the
conditions of paragraph 2 are met.
A firm may use a short position where this is part of an
index, provided that the FCA assesses annually and is
satisfied that the firm’s internal control mechanisms are
adequate in relation to internal hedges.
Yes
Yes
Financial Conduct Authority July 2013
77