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
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Publishes Methodological Guide to Mystery Shopping

    The European Banking Authority (EBA) published a methodological guide to mystery shopping.

    July 21, 2021 WebPage Regulatory News
    News

    APRA Issues Update on Capital Reform Policy Settings for Banks

    The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.

    July 21, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Assess Continuity Planning of Market Infrastructures

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.

    July 21, 2021 WebPage Regulatory News
    News

    BoE Announces Changes to Validation Rules for Form BTL

    The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.

    July 20, 2021 WebPage Regulatory News
    News

    BCBS Proposes Changes to Process for Reviewing G-SIB Methodology

    The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.

    July 20, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7281