Find out more about what CRD IV means for your firm, including what types of firms are affected, Handbook changes and firms remaining on BIPRU (CRD III) rules
Types of firms affected
The firms affected by CRD IV are:
- investment firms that were previously subject to the CRD, including:
- firms that benefit from the current exemptions on capital requirements and large exposures for specialist commodities derivatives firms
- firms that only execute orders and/or manage portfolios, without holding client money or assets
- other firms in the investment sector (such as exempt-CAD firms and management companies as defined under the UCITS Directive, and Alternative Investment Fund Managers (AIFMS) as defined under the Alternative Investment Fund Managers Directive (AIFMD)), subject to certain CRD IV provisions (eg, on ‘initial capital’ in the Directive, etc)
We have adopted a new Prudential sourcebook for Investment Firms (IFPRU). We have made changes to the Systems and Controls sourcebook and other amendments where necessary to ensure our Handbook is consistent with CRD IV.
Firms remaining on BIPRU (CRD III) rules
There is a competent authority discretion available for certain investment firms to stay on CRD III rules, rather than move to the CRD IV rules. We consulted on the proposal to apply this discretion for FCA investment firms. We confirmed that the discretion would be applied in our Policy Statement in December 2013. FCA firms that benefit from this discretion should continue to submit their existing regulatory returns as opposed to submitting the CRD IV financial reporting requirements (COREP and FINREP).
We undertook an exercise to identify the firms eligible to benefit from this discretion. In December 2013 we sent letters to all CRD firms confirming our understanding of their status as CRD III or CRD IV.
If your firm believes it may be eligible to benefit from this competent authority discretion or you would like more information on remaining on CRD III/BIPRU rules, please see CRD III page on what you need to do.