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

CP13/6
CRD IV for Investment Firms
1.
Overview
Introduction
1.1 The Financial Conduct Authority (FCA) is the competent authority (CA) under the Financial
Services and Markets Act (FSMA) for the prudential regulation of a large number of investment
firms subject to the Capital Requirements Directive (CRD).
1.2 This Consultation Paper (CP) sets out our proposed changes to the FCA Handbook as a result
of the transposition of CRD IV – a major package of reforms to the CRD, the EU’s prudential
requirements regime for credit institutions and investment firms.
1.3 The Prudential Regulation Authority (PRA) is publishing a separate CP on CRD IV as it applies
to its authorised firms.
Who does this consultation affect?
1.4 The proposals in this CP apply principally to the following FCA authorised firms:
• investment firms that are currently subject to the CRD including:
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firms that benefit from the current exemptions on capital requirements and large
exposures for specialist commodities derivatives firms; and
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firms that only execute orders and/or manage portfolios, without holding client money
or assets.
• other firms in the investment sector (exempt-CAD firms, management companies – as
defined under the UCITS Directive, Alternative Investment Fund Managers (AIFMs) – as
defined under the Alternative Investment Fund Managers Directive (AIFMD)), subject to
certain CRD IV provisions (e.g. on ‘initial capital’ in the Directive, etc.).
1.5 The proposals in this CP do not apply to credit institutions (banks and building societies) or
investment firms supervised by the PRA.
6 July 2013
Financial Conduct Authority