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

CP13/6
CRD IV for Investment Firms
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?
76(2-3) FCA may give a direction to a firm to allow it to use a
conservative estimate of the underlying exposure of
the firm to capital instruments included in indices as an
alternative to the firm’s calculating its exposure to its own
or financial sector entities’ CET1, AT1 and T2 instruments
included in such indices. FCA may only give this direction
where the firm has demonstrated that it is “operationally
burdensome” to monitor such underlying exposure.
79 Where an institution holds regulatory capital
instruments and subordinated loans in a financial sector
entity temporarily, the FCA may waive on a temporary
basis the provisions on deduction that would otherwise
apply to those instruments should those holdings be
for the purposes of a financial assistance operation
designed to reorganise and save that entity.
Yes
Yes
83 BIPRU
8.6.11R
to BIPRU
8.6.20R
84(5) BIPRU
8.6.10R
89 GENPRU
2.2.202R
to GENPRU
2.2.207R
93(2-5) GENPRU
2.2.202R
to GENPRU
2.2.207R
FCA may give a direction to a firm to waive the
requirement to include holdings in SPVs in the
firm’s consolidated own resources provided that the
conditions set out in this article are met.
FCA may waive the application of this article to a
‘parent financial holding company’ that satisfies a
number of conditions thereto.
FCA must choose which treatment between paragraphs
(a) (1250% RW) or (b) (prohibition) of art. 89(3) must be
applied to UK CA-regulated firms.
This is a grandfathering clause, carried over from the
BCD. It is not currently implemented by the FCA, and
we do not believe it is relevant to FCA firms.
Yes
Yes
Yes
No
95(2) FCA may allow firms that carried out a combination of
certain MIFID activities to retain current CRD rules on own
funds requirements (Pillar 1) as it stood under national law
(i.e. BIPRU and GENPRU) on 31 December 2013.
97(2) FCA may alter the FOR where it is deemed appropriate.
The EBA will publish technical standards around this by
March 2014.
99(6) SUP 16.12 Where the FCA considers that the financial information
required by paragraph 2 of this provision is necessary
to obtain a comprehensive view of the risk profile of
the activities of, and a view of the systemic risks to
the financial sector or the real economy posed by,
institutions -other than those referred to in paragraphs
2 and 3 that are subject to an accounting framework
based on Directive 86/635/EEC, the FCA shall consult
EBA on the extension of the reporting requirements
of financial information on a consolidated basis to
those institutions, provided that they are not already
reporting on such a basis
Yes (see Chapter
6 of this CP)
Yes
No
78 July 2013
Financial Conduct Authority