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Capital Requirements Directive (CRD), sets out the... empezar lección
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... the prudential (capital) rules for financial firms. It applies to banks, building societies and most investment firms. The aim is to ensure that firms hold adequate financial resources and have adequate controls to prudently manage the business
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Principle 4 of the FCA's Principles for Businesses establishes that: empezar lección
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‘a firm must maintain adequate financial resources’ Financial resources include both capital resources and liquidity resources, so that the firm can meet its liabilities as they fall due.
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Capital Adequacy Requirements. The standards for investment firms are set out in three modules (Sourcebooks) of the FCA Handbook: 3 empezar lección
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GENERAL PRUDENTIAL Sourcebook. | INTERIM PRUDENTIAL Sourcebook. | MiFID UK Prudential Sourcebook. GIM GENPRU - high-level standards for firms which are subject to Capital Requirements Directive. | MIFIDPRU - prudential requirements for UK-regulated firms. | Capital adequacy rules for investment firms.
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The Capital Requirements Directive (CRD) and the Capital Requirements Regulations (CRR) apply to __? empezar lección
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(banks/deposit taking institutions)
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CRD framework three pillars: (Capital Requirements Directive) Pillar 1 | Pillar 2 | Pillar 3 empezar lección
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MINIMUM REQUIREMENTS for credit and risk. | Firms decide if ADDITIONAL CAPITAL should be held to cover risks not covered in Pillar 1. | DISCLOSURE of information about risks. MAD Minimum capital requirements for credit and risk. | Firms decide if additional capital should be held to cover risks not covered in Pillar 1. | Disclosure of information about risks.
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Firms subject to CRD requirements must also comply with provisions relating to the quality of capital held. Capital is split into three tiers: 3 Capital Requirements Directive empezar lección
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Core Tier One capital. | Tier Two capital. | Tier Three capital For example: Permanent share capital, reserves, externally verified interim profits.| Long-term subordinated debt.| Short-term subordinated debt.
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With the exception of MiFID investment firms, firms that are not subject to the CRD requirements must adhere to the rules in the ‘IPRU-INV’ Sourcebook. Such firms include: LASS-J Capital Requirements Directive (CRD) empezar lección
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Lloyd’s agents,| Authorised professional firms,| Securities-futures firms,| Service companies, | Junior ISA credit union providers. LASS-J
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Parties commit to buy or sell an asset on a specified date in the future, but at a price agreed today. As the price is agreed at the outset, the seller is protected from a fall in the price of the underlying asset.
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Passporting is the method by which...? 3cz empezar lección
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... firms authorised in one EU member state | under MiFID II, | are permitted to carry on regulated financial services in another state without the local authorization. Markets in Financial Instruments Directive II
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IPRU-INV. All firms must comply with two overarching requirements: Investment Firms Prudential Regime 2 | overarching - nadrzędny empezar lección
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Firms must have available the amount of financial resources.| Firms must notify the FCA if they become aware of a breach.
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The aim of the prudential regime (Investment Firms Prudential Regime (IFPR)) is to simplify the requirements for what kind of firms? 2cz empezar lección
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FCA solo-regulated | MiFID Investment firms. By refocusing prudential requirements away from the risks that firms face.
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Investment firms are subject to consistent prudential requirements, that's in order to spend...? IFPR outcomes identified by FCA empezar lección
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... less time on complex capital requirement calculations
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A prudential regime that is aligned to the way that investment firms run their business by taking into account the different...? IFPR outcomes identified by FCA empezar lección
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... different business models of FCA investment firms. Prudential rules that are understandable (rules brought into a new single prudential sourcebook, MIFIDPRU).
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Capital Requirements Directive (CRD) applies to...? 3 (simple) empezar lección
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Banks, | Building societies | and most Investment firms. BBI The aim is to ensure that firms hold adequate financial resources and have adequate controls to prudently manage the business
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The aim of Capital Requirements Directive (CRD) is to ensure that firm holds......? 2 empezar lección
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... adequate financial resources, | and have adequate controls.
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Suitability. The firm must demonstrate it is _____ to obtain Part 4A permission. Authorised Person - Threshold Conditions empezar lección
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Consideration of the range of its proposed regulated activities, sound conduct and connections with others. Firm must act with probity and on on a proactive basis.
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Effective supervision (including the existing close links condition). Firms need to ensure that there is no impediment to their effective supervision by virtue of...? Authorised Person - Threshold Conditions empezar lección
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... of the nature and complexity of regulated activities
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Business to be conducted in a prudent manner essence: Authorised Person - Threshold Conditions empezar lección
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Adequate financial and non-financial resources in possession. It's a virtually a duplication of Appropriate resources threshold.
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Location of offices. Registered office must be located in...? Authorised Person - threshold conditions empezar lección
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Legal status. In principle, any person can apply for authorisation, including individuals. However,...? Authorised Person - threshold conditions empezar lección
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... certain regulated activities are subject to restrictions depending on the applicant’s legal form. esp. an individuals and partnerships
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