Featured Product

    EU Finalizes Directive and Prudential Rules for Investment Firms

    December 05, 2019

    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


    Related Links

    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

    Featured Experts
    Related Articles

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514