EC welcomed the political agreement reached by the European Parliament and member states on more proportionate and effective prudential rules for investment firms, under the EU Capital Markets Union. The revised legislation will ensure more proportionate rules and better supervision for all investment firms on capital, liquidity, and other risk management requirements.
The revised legislation should also ensure a level-playing field between large and systemic financial institutions: investment firms that conduct bank-like activities and pose similar risks as banks will be subject to the same rules and supervision as banks. Moreover, simpler and less risky firms will benefit from a fully revised rulebook more tailored to their business models. As part of the new framework, equivalence rules for the provision of investment services by third-country firms will also be strengthened and clarified. Further technical work will follow this political agreement so that the European Parliament and the Council can formally adopt the final texts under this legislature.
EC had, in December 2017, adopted a proposal for a regulation and a proposal for a directive to amend the current EU prudential rules for investment firms. The aim of the review is to introduce more proportionate and risk-sensitive rules for investment firms. The two proposed acts under this would amend the existing prudential framework for investment firms, as set out in the capital requirements directive and regulation (CRD IV/CRR) and in the markets in financial instruments directive and regulation (MiFID2/MiFIR). The December 2017 EC proposal on prudential rules for investment firms is part of the EC Action Plan to strengthen the Capital Markets Union. The rules support the goal of the Capital Markets Union to further promote the activities of firms helping investments flow from Europe's savers to Europe's businesses, with due regard for their risks.
Keywords: Europe, EU, Banking, Securities, CRD IV, CRR, Proportionality, Investment Firms, Capital Markets Union, EC
Previous ArticleESMA Chair on Response to Developments on Crypto-Assets
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
EBA has decided to phase out the guidelines on legislative and non-legislative moratoria of loan repayments, in accordance with the earlier specified end of September deadline.