New EU and UK prudential and remuneration regimes for investment firms
Key impacts of the new regimes
Legislation & guidance under the EU regime
Investment Firms Regulation (IFR) was published in the Official Journal on 5 December 2019.
Investment Firms Directive (IFD) was published in the Official Journal on 5 December 2019.
RTS: Thresholds and criteria for firms subject to CRR
RTS/ITS | Official Journal version | Commission adopted version | EBA consultation process |
RTS on the criteria for subjecting certain investment firms to the CRR (Article 5(6) of the IFD) (EUR 5bn threshold) | Delegated Regulation (C(2021) 5780) (6 August 2021) | EBA/CP 2020/06 (June 2020) Final draft RTS: EBA/RTS/2020/11 (16 December 2020) |
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RTS on information related to thresholds for credit institutions reporting requirements under Article 55(5) IFR (EUR 5 bn) | EBA/CP/2020/07 (4 June 2020) Final draft RTS: EBA/RTS/2021/18 (December 2021) - Expected to apply from June 2022 |
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Second RTS on information for effective monitoring of credit institution thresholds under Article 55(5) IFR (EUR 30 bn) | Final draft RTS: EBA/RTS/2021/18 (20 December 2021) | ||
RTS on the information to be provided for the authorisation of investment firms as credit institutions (Article 8a(6) point (a) of CRD) | Delegated Regulation (C(2022) 3342 (10 June 2022) |
EAA/CP 2020/06 (June 2020)
Final draft RTS: EBA/RTS/2020/11(16 December) |
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RTS on the calculation of the (Class 1 – EUR 30bn) threshold referred to in Article 4(1)(1b) CRR (Article 8a(6) point b) of the CRD) | First CP: EBA/CP 2020/06 (June 2020) Second CP: EBA/CP/2021/23 (June 2021) Final draft RTS: EBA/CP/2021/17 (December 2021) - Expected to apply from June 2022 |
RTS: Capital requirements and composition
RTS/ITS | Official Journal version | Commission adopted version | EBA consultation process |
RTS to specify the calculation of the fixed overheads requirement and to specify the notion of a material change (Article 13(4) of the IFR) | Commission Delegated Regulation (EU) 2022/1455 (5 September 2022) | Delegated Regulation (C(2002) 2162) (25 April 2022) | EBA/CP 2020/06 (June 2020) Final draft RTS: EBA/RTS/2020/11 (16 December 2020) |
RTS to specify the methods for measuring the K-factors (Article 15(5) point (a) of the IFR) | Commission Delegated Regulation (EU) 2022/25 (11 January 2022) | Delegated Regulation (C(2021) 6739) (22 September 2021) | EBA/CP 2020/06 (June 2020) Final draft RTS: EBA/RTS/2020/11 (16 December 2020) |
RTS to specify the notion of segregated accounts (Article 15(5)point (b) of the IFR) | Commission Delegated Regulation (EU) 2022/26 (11 January 2022) | Delegated Regulation (C(2021) 6807) (24 September 2021) | EBA/CP 2020/06 (June 2020) Final draft RTS: EBA/RTS/2020/11 (16 December 2020) |
RTS to specify adjustments to the K-DTF coefficients (Article 15(5) point (c) of the IFR) | Commission Delegated Regulation (EU 2022/76 (20 January 2022) | Delegated Regulation (C(2021) 6731) (22 September 2021) | EBA/CP 2020/06 (June 2020) Final draft RTS: EBA/RTS/2020/11 (16 December 2020) |
RTS to specify the calculation of the amount of the total margin for the calculation of K-CMG (Article 23(3) of the IFR) | Commission Delegated Regulation (EU) 2022/244 (22 February 2022) | Delegated Regulation (C(2021) 6776) (24 September 2021) | EBA/CP 2020/06 (June 2020) Final draft RTS: EBA/RTS/2020/11 (16 December 2020) |
RTS on prudential consolidation of investment firms groups (Article 7(5) of the IFR) | EBA/CP 2020/06 (June 2020) [Final draft outstanding, was due in December 2020] |
ITS: Supervisory reporting and disclosures
RTS/ITS | Official Journal version | Commission adopted version | EBA consultation |
ITS on reporting requirements under Article 54(3) and disclosures requirements under Article 49(2) IFR – new reporting framework in relation to the calculation of own funds, levels of minimum capital, concentration risk, liquidity requirements and the level of activity in respect of small and non-interconnected investment firms |
EBA/CP/2020/07 (4 June 2020) Final draft ITS: EBA/ITS/2021/02 (5 March 2021) The Annexes on this page contain the relevant reporting and disclosure templates for Class 2 and 3 firms. |
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RTS on disclosure of investment policy under Article 52 IFR | Delegated Regulation (C(2022) 1413 (11 March2022) |
EBA/CP/2021/15 (31 March 2021), together with Annex I (disclosure templates - opens in Excel) and Annex II (instructions)
Final draft RTS: |
RTS: Remuneration and governance
RTS/ITS | Official Journal version | Commission adopted version | EBA consultation |
RTS on classes of instruments suitable for variable remuneration in accordance with Article 32(8) IFD | Delegated Regulation (C(2021)5948 (13 August 2021) | EBA/CP/2020/08 (4 June 2020) Final draft RTS: EBA/RTS/2021/01 (21 January 2021) |
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RTS on criteria to identify material risk takers in accordance with Article 30(4) IFD | Delegated Regulation (C(2021) 5949 (13 August 2021) | EBA/CP/2020/09 (4 June 2020) Final draft RTS: EBA/RTS/2021/02 (21 January 2021) |
RTS/ITS: Supervisory convergence and SREP
RTS/ITS | Official Journal version | Commission adopted version | EBA consultation |
ITS on the supervisory disclosure by competent authorities in accordance with Article 57(4) IFD | Commission Implementing Regulation (EU) 2022/389 of 8 March 2022 | EBA/CP/2021/02 (11 February 2021) Final draft ITS: EBA/ITS/2021/04 (21 June 2021) |
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RTS on information exchange between competent authorities of home and host Member States in accordance with Article 13(7) IFD | EBA/CP/2021/04 (24 February 2021) Final draft RTS: EBA/RTS/2021/07) (5 July 2021) |
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ITS on information exchange between competent authorities of home and host Member States in accordance with Article 13(8) IFD | EBA/CP/2021/04 (24 February 2021) Final draft ITS: EBA/ITS/2021/07) (5 July 2021) |
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RTS on Pillar 2 add-ons under Article 40(6) | EBA/CP/2021/34 (18 November 2021) | ||
RTS on colleges of supervisors for investment firm groups in accordance with Article 48(8) IFD | EBA/CP/2021/05 (24 February 2021) Final draft RTS: EBA/RTS/2021/06) (5 July 2021) |
RTS/ITS | Official Journal version | Commission adopted version | Timing of decisions | EBA consultation |
RTS on the specific liquidity measurements requirements under Article 42(6) IFD | EBA/CP/2021/41 consultation paper (Consultation closes 10 March 2022 |
Level 3 measure | Final measure | Consultation process |
Guidelines on sound remuneration policies under Art 34(3) IFD | EBA/CP/2020/26 (17 December 2020) | |
Guidelines on internal governance under Art 26(4) IFD | EBA/CP/2020/27 (17 December 2020) | |
Guidelines on common procedures and methodologies for the supervisory review and evaluation (SREP) under IFD | ESMA35-36-2621 (20 July 2022) - Final report on joint EBA and ESMA Guidelines | EBA/CP/2021/35 (18 November 2021) |
Guidelines on liquidity requirements exemptions for small and non-interconnected investment firms under Art 43(4) IFR | EBA/CP/2021/42 (10 December 2021) |
EBA report (December 2015) highlighting weaknesses in existing prudential framework for investment firms.
First EBA opinion (October 2016) containing advice on analysis relating the class 1 firms.
EBA discussion paper (November 2016) on new prudential framework (including K-factors) for class 2 and 3 investment firms.
Second EBA opinion (September 2017) containing advice on the prudential requirements for class 2 and 3 investment firms.
Commission proposals for an Investment firms regulation (IFR) and an Investment firms directive (IFD) (December 2017).
Third EBA opinion (July 2021) on appropriate supervisory and enforcement practices for the process of authorising investment firms as credit institutions under Article 8a.
Legislation, rules & guidance under the UK IFPR regime
FCA rules and guidance
Consultation paper | Policy statement |
First consultation paper (CP20/24), December 2020 – Read our briefing note. | First policy statement (PS21/6), June 2021 |
Second consultation paper (CP21/7), April 2021 - Read our briefing note. |
Second policy statement (PS21/9), June 2021 – Read our briefing note.
The final rules were published in October 2021 under legal instruments: FCA 2021/38 and FCA 2021/39 |
Third FCA consultation paper (CP21/26), August 2021 – Read our briefing note. |
Third policy statement (PS21/17), November 2021.
The final rules are in the legal instruments FCA 2021/38 and FCA 2021/39, October 2021 |
Other relevant sources:
Events
FRG Breakfast Briefings