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?
469,
474
and
476
GENPRU 2.2
FCA must determine the applicable percentage of
deductions from various items.
Yes (see chapter
4)
479 BIPRU
8.6.10R
to BIPRU
8.6.20R
FCA must determine, for each year up to end 2017,
the applicable percentage of minority interests that
under Art. 81(2) would otherwise not be allowed in
consolidated reserves but qualified under the BCD that
may be grandfathered.
Yes (see chapter
4)
480 FCA must determine, for each year up to end 2017,
the multiple of the percentage of (i) minority interests
allowed under Art. 84 in consolidated CET1, (ii)
subsidiary Tier 1 capital allowed under Art. 85 in
consolidated own funds and (iii) subsidiary own funds
allowed under Art. 87 in consolidated own funds.
Yes (see chapter
4)
Table 21: Capital Requirements Directive: Areas of national discretion
CRD
article
FCA
Handbook
reference
–if existing
discretion
Area of national discretion
Does the
FCA intend
to exercise
the relevant
discretion from
1 January 2014?
29(3-4) GENPRU
2.1.47R,
BIPRU
1.1.20R
This provision allows to reduce a firm’s initial capital
requirement from € 125,000 to € 50 000 where a firm
is not authorised to hold client money or securities, to
deal for its own account, or to underwrite issues on a
firm commitment basis.
Yes
32 By way of derogation from Articles 28(2), 29(1), 29(3)
and 30, Member States may continue an authorisation
of investment firms and firms covered by Article 30
which was in existence before 31 December 1995,
the own funds of which firms or investment firms are
less than the initial capital levels specified for them in
Articles 28(2), 29(1), 29(3), and 30.
74(4) In accordance with the principle of proportionality, the
requirements for an institution to draw up, maintain
and update recovery plans and for the resolution
authority, after consulting the CA, to prepare resolution
plans, may be reduced if, after consulting the national
macro-prudential authority, the FCA consider that
the failure of a specific institution due, inter alia, to its
size, to its business model, to its interconnectedness to
other institutions, or to the financial system in general,
will not have a negative effect on financial markets, on
other institutions or on funding conditions.
76(3) FCA is permitted to allow a firm is not considered
‘significant’ to merge its risk and audit committees.
No
Yes
Yes
Financial Conduct Authority July 2013
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