Death of CRD IV?

In late 2016, the European Commission proposed an update to the existing regulatory framework that will be known as the 'CRD-V package'.

In addition to this, the EBA is proposing a new prudential framework for investment firms. Under this new framework, investment firms will fall under three categories, each with different capital, liquidity and reporting requirements:
  • Class 1 (large or systemic investments firms) will fall under the new CRD-V framework;
  • Class 2 (other non-systemic) and Class 3 (small and non-interconnected) will fall under a new framework for investment firms. The capital, liquidity and disclosure requirements for these firms will be significantly different from current requirements.
Class 2 and Class 3 firms are able to apply the CRR in the version it stood before CRD-V comes into force, or until the new prudential framework for investment firms is in place.

Below are details of the requirements based on each class: