What UK CRR/CRD IV means for firms

Find out more about what the UK CRR/CRD IV means for your firm, including what types of firms are affected, Handbook changes and firms remaining on BIPRU rules.

Types of firms affected

The firms affected by the UK CRR/CRD IV are:

  • investment firms that were previously subject to the EU Capital Requirements Directive (CRD) and the Capital Requirements Regulation (CRR) – collectively referred to as CRD IV, 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 UK UCITS, and alternative investment fund managers under the UK AIFMD) subject to certain UK CRR/CRD IV provisions (eg on 'initial capital' etc)

Handbook changes

We have made the necessary changes to our Prudential sourcebook for Investment Firms (IFPRU), to make sure that it continues to operate effectively after Brexit. 

We have also made changes to the Systems and Controls sourcebook, and other amendments where necessary, to ensure our Handbook is consistent with the UK CRR/CRD IV.

Firms remaining on BIPRU rules

We have applied a discretion available for certain investment firms to stay on BIPRU rules, rather than move to the UK CRR/CRD IV rules. 

We originally consulted on the proposal to apply this discretion for FCA investment firms. We then confirmed that the discretion would be applied in our Policy Statement in December 2013. 

Following the UK’s withdrawal from the EU, we will continue to exercise the discretion under Article 95(2) of UK CRR. FCA firms that benefit from this discretion should continue to submit their existing regulatory returns as opposed to submitting the UK CRR financial reporting requirements (COREP and FINREP).

If your firm believes it may be eligible to benefit from this discretion, or you would like more information on remaining on BIPRU rules, find out more.