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?
416 FCA may provide general guidance that institutions
shall follow in identifying assets of high and extremely
high liquidity and credit quality. However, this is
pending a uniform definition in accordance with Article
460 (enter into force no later than 31 December 2014).
422(8) FCA may grant permission to apply a lower outflow
percentage to certain liabilities on a case-by-case basis
assuming certain conditions are met.
Yes
Yes
425
and
426
An institution cannot categorise any undrawn credit,
liquidity facilities or any other commitments received as
liquidity inflows, unless granted a permission to do so
by the FCA.
Yes
438(b)
BIPRU
11.5.4R,
BIPRU
11.5.5R,
BIPRU
11.5.6R
Firms shall disclose the result of their internal capital
adequacy assessment process if instructed to do so by
the FCA.
Yes
465 GENPU
2.1.40 R to
GENPRU
2.1.45 R
BIPRU 3.1.5
R BIPRU
4.1.16 R
FCA is permitted to allow firms to build their capital
position to CRD IV compliance with the end point of
compliance by end-December 2014. The discretion
allows the FCA to permit firms to:
maintain a CET1 ratio of 4%-4.5% during the
transitional period, leading to compliance with the
4.5% minimum by end-2014;
maintain a Tier 1 ratio of 5.5%-6% during the
transitional period, leading to compliance with the 6%
minimum by end-2014.
The FCA is required to publish its transitional
requirements in this area.
Yes
466 FCA shall grant institutions which are required to effect
the valuation of assets and off-balance sheet items
and the determination of own funds in accordance
with International Accounting Standards as applicable
under Regulation (EC) No 1606/2002 for the first time
a lead time of 24 months for the implementation of the
necessary internal processes and technical requirements.
Yes
467 GENPRU
1.3.9R
468 GENPRU
1.3.9R
FCA must determine the applicable percentage
of unrealised losses that institutions must
include in CET1 for each year up to end 2017.
After 31 December 2017 no adjustment to
include unrealised losses allowed under Art. 35
(except as per Art. 33).
FCA must determine the applicable percentage of
unrealised gains that institutions must remove from
CET1 for each year up to end 2017. After 31 December
2017 no adjustment to remove unrealised gains allowed
under Art. 35 (except as per Art. 33).
Yes (see chapter
4)
Yes (see chapter
4)
88 July 2013
Financial Conduct Authority