Authored by Gillian Smith
The European Commission has published an inception impact assessment on its review of the appropriate treatment for investment firms.
The impact assessment relates to the Commission's review of the prudential framework for investment firms, as required by Articles 293(2), 498(2), 508(2) and 508(3) of the Capital Requirements Regulation ("CRR") (Regulation 575/2013). In November 2016, the European Banking Authority ("EBA") published a discussion paper on a new prudential framework, with the aim of submitting an opinion and report to the European Commission by June 30, 2017.
The impact assessment provides an overview of the background to the initiative and the European Commission's ongoing work. The European Commission states that, in light of the EBA's consultation on the prudential framework, it does not intend to launch its own public consultation. It is, however, carrying out a consultation with industry stakeholders on the proposal. In particular, it intends to liaise with the industry on aspects of the proposal, such as the calibration and impact of any changes to the regime and foreseeable potential costs.
The European Commission states that the bulk of any new rules will take the form of a Regulation. This will be accompanied by a Directive covering elements that need to take the form of a directive for legal reasons, such as organizational and authorization requirements and corporate governance.
The impact assessment indicates that the European Commission will adopt a legislative proposal in the fourth quarter of 2017.
The European Commission is seeking feedback on the impact assessment. The European Commission's website on impact assessments states that the deadline for comments is April 19, 2017.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
