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Prudential Regulation Review
Prudential Regulatory Review is a monthly newsletter dedicated to summarising all major risk and regulatory updates.
April was a significant month for financial services regulation.
The EBA issued their final draft for regulatory technical standards on the conditions to allow institutions to calculate capital requirements of securitised exposures (Kirb) in accordance with the purchased receivables approach. Additionally, The BIS published a consultative document on the consolidated Basel framework and the EU Risk Reduction Measures package was approved.
In Ireland, the Central Bank of Ireland’s Director General, Financial Conduct, Derville Rowland, set out the Central Bank’s views on outsourcing at a Central Bank Conference, and shared some thoughts on the Central Bank’s proposals for a Senior Executive Accountability Regime (SEAR) at an event in Deloitte.
Additionally, the Central Bank of Ireland published its SME Market Report for 2019, that aims to provide a timely monitor of developments in the provision of credit to Irish Small and Medium Enterprises (SMEs) by financial intermediaries.
IFR/IFD: a new made-to-measure prudential regime for EU investment firms?
On 16 April, the European Parliament adopted in Plenary a Regulation on the prudential requirements for investment firms (IFR) and a Directive on the prudential supervision of investment firms (IFD). IFR/IFD introduces a new prudential regime for certain investment firms, tailored to their activities and asset size. While many investment firms will see a tailored regime as a positive step, the implications of the new regime will differ from firm to firm. Each firm will need to assess what the regime change means for it and take action accordingly. IFR/IFD also revises the MiFID II/MiFIR third-country regime for investment services. This blog provides a summary of the changes contained in IFR/IFD.