Featured Product

    EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package

    February 26, 2021

    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 amendments to MiFID II are related to the information requirements, product governance, and position limits while amendments to CRD4 and 5 are related to the application of these directives to investment firms. To ensure a consistent application of the legal framework applicable to the investment firms set out in Article 67 of the Investment Firms Directive (IFD or Directive 2019/2034), the transposition deadline for CRD5 with respect to investment firms has been extended to June 26, 2021. Directive 2021/338 shall enter into force on the day following that of its publication in the Official Journal of the European Union.

    An amendment to CRD4 is specified in Article 3 of Directive 2021/338, which states that, for the purpose of identifying staff whose professional activities have a material impact on the institution’s risk profile as referred to in Article 92(3), except as regards staff in investment firms, EBA shall develop draft regulatory technical standards setting out the criteria to define the following:

    • Managerial responsibility and control functions;
    • Material business unit and significant impact on the relevant business unit’s risk profile; and 
    • Other categories of staff not expressly referred to in Article 92(3) whose professional activities have an impact on the institution’s risk profile comparably as material as that of those categories of staff referred to therein.

    Regarding the application of these regulatory technical standards to investment firms, the empowerment laid down in Article 94(2) of CRD4, as amended by CRD5, shall continue to apply until June 26, 2021. Furthermore, Article 4 (on transposition) of Directive 2021/338 specifies that member states shall adopt and publish by November 20, 2021 the laws, regulations, and administrative provisions necessary to comply with this Directive. They shall apply the measures from February 28, 2022. Member states shall communicate to EC the text of the main provisions of national law, which they adopt in the field covered by this Directive. By way of derogation from paragraph 1, the amendments to CRD4 and CRD5 shall apply from December 28, 2020. The amendments in Directive 2021/338 form a part of the changes proposed under the EU Capital Markets Recovery Package. 


    Related Links

    Effective Date: February 27, 2021

    Keywords: Europe, EU, Banking, Securities, Investment Firms, COVID-19, IFD, CRD5, CRD4, Basel, Remuneration Requirements, European Council, European Parliament

    Featured Experts
    Related Articles

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697