EU Capital Requirements Directive

On 12 June the Financial Services Authority (FSA) issued the third of its industry bulletins for investment firms affected by the Capital Requirements Directive (CRD). This follows three further consultation papers issued by the FSA in May that touch on specific aspects of CRD implementation, namely systems and controls, regulatory reporting and the structure of the new prudential sourcebook. The bulletin provides an insight into these three consultation papers and further information on individual guidance and transitional provisions.

The aim of the CRD is to introduce a modern, risk-sensitive prudential framework for credit institutions and investment firms across the EU and will come into force in the UK on 1 January 2007. Full copies of the bulletin and consultation papers are available on the FSA website.

If you would like to discuss the implications on your business of the CRD, please contact either:

Giles Murphy
Neil Fung-On
Clare Copeman