The prudential rules for investment firms changed

The prudential rules for investment firms have been up to now part of the wider EU prudential framework which mainly applies to credit institutions, i.e. the requirements are set out in Directive 2013/36/EU and Regulation (EU) No 575/2013 on capital requirements (the so-called “CRD/CRR”). However, the European Union started a review of this legal framework seeking to optimise the burden for different types of institutions. This objective is also known as proportionality principle. We informed about the review of the legal framework for investment firms in an earlier article.

The newly approved final legislation on investment firms was published on 5^th December 2019 in the EU Official Journal, which includes:

• Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27^th November 2019 on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014
• Directive (EU) 2019/2034 of the European Parliament and of the Council of 27^th November 2019 on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU

Most of the provisions of the Regulation shall apply from 26^th June 2021. The Directive is supposed to be adopted by Member States by 26^th June 2021 and those measures applied from 26^th June 2021 except one provision where Member States shall apply the measures necessary to comply with from 26^th March 2020.

28-1-2020