PS13/10: CRD IV for Investment Firms

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We have consulted on our proposed changes to the FCA Handbook arising from the transposition of CRD IV. We are now setting out our feedback to the responses we received to our consultations – in  CPs 13/6, 13/9 (Chapter 16) and 13/12 (together the ‘CRD IV CPs’) – and the final Handbook rules and guidance.

Why are we issuing this Policy Statement (PS)?

We are the competent authority under the Financial Services and Markets Act for the prudential regulation of a large number of investment firms subject to the Capital Requirements Directive (CRD). CRD IV (that consists of Directive 2013/36/EU and Regulation (EU) 575/2013) is the EU implementation of Basel III for banks, which also applies to investment firms. We consulted on changes arising from the CRD IV in the CRD IV CPs. This Policy Statement (PS) includes the Handbook changes we are required to transpose under CRD IV by 1 January 2014.

Policy statement PS13/10

Who is this PS aimed at?

The proposals in this PS apply principally to the following FCA-authorised firms:

  • investment firms that are currently 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
  • management companies, as defined under the UCITS Directive, and alternative investment fund managers (AIFMs), as defined under the AIFMD
  • certain exempt CAD firms (please see the box on page 52 of CP13/6)

The proposals in this PS do not apply to credit institutions (banks and building societies) or investment firms supervised by the Prudential Regulation Authority.

What are the next steps?

The Handbook rules and guidance in this PS will come into force on 1 January 2014.

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