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?
113(6) BIPRU
3.2.20 R
to BIPRU
3.2.27R
FCA may allow firms to reduce/waive risk weights to
intra-group exposures providing that certain conditions
are met.
Yes
114(7),
115(4),
116(5),
132(3)
and
142
BIPRU
3.4.6R,
BIPRU
3.4.15R,
3.4.26R,
BIPRU
3.4.122R,
GENPRU 3.2
The Commission must produce a list of third country
equivalents in relation to these articles by 1 January
2015. Until then the FCA may continue to treat third
country equivalents as such with the proviso that no
additional third country equivalents can be approved in
respect of these articles after 1 January 2014.
Yes
124,
125
and
126
BIPRU
3.4.55 R
FCA may increase the risk weights on residential
mortgage (35%) and commercial immovable property
(50%) within certain thresholds or set stricter criteria
than those in articles 125(2) and 126(2). The EBA should
be consulted if this were exercised.
Yes
(see chapter 4)
129 The competent authorities may, after consulting the
EBA, partly waive the application of point (c) of the first
subparagraph and allow credit quality step 2 for up to
10 % of the total exposure of the nominal amount of
outstanding covered bonds of the issuing institution.
No
143
and
144
BIPRU 4
These articles permit a firm to use an IRB model
provided that the FCA deems the firm to have met
the conditions in Part Three, Title II, Chapter 3. The
EBA will submit standards around the IRB assessment
methodology by 31 December 2014.
Yes
150 BIPRU
4.2.26
R-35G
157 BIPRU
4.8.21R
Further criteria for IRB Permission: Where institutions
have received the prior permission of the FCA,
institutions permitted to use the IRB Approach in the
calculation of risk-weighted exposure amounts and
expected loss amounts for one or more exposure
classes may apply the Standardised Approach for
certain exposures
Further criteria for IRB Permission: FCA may
exempt a firm from the obligation to calculate and
recognise RWEA for dilution risk where the firm has
demonstrated to the FCA that dilution risk is immaterial
for a given exposure.
Yes
Yes
Financial Conduct Authority July 2013
79