Revised framework for investment firms

13-12-2017

The EU framework for investment firms consists of several legislative acts: the Directive on markets in financial instruments (MiFID), the Capital Requirements Regulation 575/2013 (CRR) and the Capital Requirements Directive 2013/36/EU (CRD). Together with various international rules, these legislative acts lay down rules on the activity of credit institutions and their prudential supervision. In 2016, the European Commission submitted two legislative proposals amending the CRR and the CRD and it now intends to further revise the existing framework for investment firms. Research shows that there are several challenges influencing the current system, especially a plethora of investment firms with different prudential requirements, leading to legislative complexity and decreasing legislative clarity. Parliament and the European Economic and Social Committee have, on several occasions, called for improvements to the existing framework. The European Commission itself has expressed a willingness to revise the CRR/CRD framework and it is expected that it will publish a legislative proposal (with its impact assessment) on a revised framework for investment firms on 20 December 2017.

The EU framework for investment firms consists of several legislative acts: the Directive on markets in financial instruments (MiFID), the Capital Requirements Regulation 575/2013 (CRR) and the Capital Requirements Directive 2013/36/EU (CRD). Together with various international rules, these legislative acts lay down rules on the activity of credit institutions and their prudential supervision. In 2016, the European Commission submitted two legislative proposals amending the CRR and the CRD and it now intends to further revise the existing framework for investment firms. Research shows that there are several challenges influencing the current system, especially a plethora of investment firms with different prudential requirements, leading to legislative complexity and decreasing legislative clarity. Parliament and the European Economic and Social Committee have, on several occasions, called for improvements to the existing framework. The European Commission itself has expressed a willingness to revise the CRR/CRD framework and it is expected that it will publish a legislative proposal (with its impact assessment) on a revised framework for investment firms on 20 December 2017.