The original proposed deadline for entry into force of the draft European Union legislation to update the framework for capital requirements, known as CRD IV1, has now passed. Negotiations between the European Parliament, European Commission and Council of Ministers to finalise the legislation are still underway.
The FSA2 continues to take all action it can to prepare for implementation of CRD IV and continues to expect firms to do the same. Taking into account the further slippages in the negotiation timetable, the FSA now expects to be able to begin collecting data under Common Reporting for the period beginning 1 January 2014, should the legislation have entered into force by this date.
The European Commission’s proposals for CRD IV, consisting of a Regulation and a Directive, had an implementation date of 1 January 2013, in line with the implementation date of the Basel III agreement. Due to the continued negotiations between the European Commission, Parliament and Council, this proposed implementation date has now passed. No alternative date has yet been communicated by the EU institutions.
The FSA will continue to undertake all preparatory work that is possible in the absence of finalised legislative text. We expect all firms in scope of CRD to do likewise. We set out our intended approach to capital transition in a statement in October 2012. Once finalised legislative text is available at the EU level the FSA intends to publicly consult on changes to FSA rules. The provisions of the Regulation will directly apply to firms.
The introduction of Common Reporting, which is incorporated into the requirements in CRD IV, is dependent on delivery of the necessary technical systems and on implementing technical standards to be drafted by the European Banking Authority and adopted by the European Commission. The FSA is proceeding with the necessary preparatory work to be ready to begin collecting data under Common Reporting for the period beginning 1 January 2014, should the legislation and related standards be in force by this date.
Background
|
