EC to Amend CRD IV and CRR to Simplify Rules for Investment Firms
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.
Related Links
Keywords: Europe, EU, Banking, Securities, CRD IV, CRR, Proportionality, Investment Firms, Capital Markets Union, EC
Previous Article
PRA Proposals on EVT for Equity Release Mortgages Under Solvency IIRelated Articles
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
US Agency Publications Address Basel, Reporting, and CECL Developments
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
SEC Extends Comment Period on Climate Risk Disclosures
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
APRA Reduces Committed Liquidity Facility, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.
CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks
The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.
PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down
The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.
EBA Updates Standards for 2023 Benchmarking of Internal Approaches
The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.
EIOPA Responds to Stakeholder Views on Blockchain in Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.