EU published, in the Official Journal of the European Union, the Directive (2019/2034) and Regulation (2019/2033) on the prudential requirements and supervision of investment firms. The published Directive and the Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. Regulation 2019/2033 shall apply from June 26, 2021, with certain exceptions.
Directive 2019/2034 lays down rules on the initial capital of investment firms and on the supervisory powers and tools for prudential supervision of investment firms by competent authorities. The Directive covers rules for the prudential supervision of investment firms by competent authorities in a manner that is consistent with the rules set out in Regulation 2019/2033. It specifies publication requirements for competent authorities in the field of prudential regulation and supervision of investment firms. Directive (EU) 2019/2034 on the prudential supervision of investment firms amends Capital Requirements Directives (CRD IV or Directive 2013/36/EU), Bank Recovery & Resolution Directive (BRRD or Directive 2014/59/EU), Markets in Financial Instruments Directive (MiFID II or Directive 2014/65/EU), Financial Conglomerates Directive (2002/87/EC), Undertakings for Collective Investment in Transferable Securities Directive (UCITS or Directive 2009/65/EC), and Alternative Investment Fund Managers Directive (AIFMD or Directive 2011/61/EU).
Regulation 2019/2033 on the prudential requirements of investment firms amends the Capital Requirements Regulation (CRR or Regulation 575/2013), Markets in Financial Instruments Regulation (MiFIR or Regulation 600/2014), Single Resolution Mechanism Regulation (SRMR or Regulation 806/2014), and Regulation 1093/2010. This regulation lays down uniform prudential requirements that apply to investment firms authorized and supervised under MiFID II and supervised for compliance with prudential requirements under Directive (EU) 2019/2034. The prudential requirements include the following:
- Own funds requirements relating to quantifiable, uniform, and standardized elements of risk‐to‐firm, risk‐to‐client, and risk‐to‐market
- Requirements limiting concentration risk
- Liquidity requirements relating to quantifiable, uniform, and standardized elements of liquidity risk
- Reporting requirements related to above mentioned points
- Public disclosure requirements
Effective Date: December 25, 2019
Keywords: Europe, EU, Banking, Securities, Investment Firms, Regulation 2019/2033, Directive 2019/2034, Reporting, Proportionality, Disclosures, Regulatory Capital, CRR/CRD
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The EBA Single Rulebook question and answer (Q&A) tool updates for this month include answers to ten questions.
ESMA updated the set of questions and answers (Q&A), along with the reporting instructions and an XML schema for the templates set out in the technical standards on disclosure requirements, under the Securitization Regulation.
EU published Regulation 2021/337, which amends the Transparency Directive (2004/109/EC), regarding the use of the single electronic reporting format for annual financial reports.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.