EU agrees regulatory framework for investment firms

The Council and the European Parliament have agreed the terms of a regulation and directive setting out prudential and supervisory measures that will apply to investment firms.

The new requirements will apply to the smaller investment firms that do not already come within the scope of the Capital Requirements Directive Regime (CRD IV). or who are not requested to apply CRD IV by their supervisory authority on the basis of their size and activities.  There will be a five year transitional period.

If the measures are endorsed by EU ambassadors and then adopted by the Parliament and Council, they will strengthen the equivalence regime applicable to third country investment firms.