A tale of two pillars

Article

A tale of two pillars

IFD/IFR introduces new capital requirements for investment firms

Investment firms provide a range of services and activities to investors in financial markets that are crucial for the functioning of the financial markets and include, among others, the reception and transmission of orders, the provision of investment advice, discretionary portfolio management and trading on own account.

Executive summary

The specific risk profiles of investment firms are not always properly captured by the banking prudential framework (CRD IV1/ CRR2). Taking this diversity into account, the European Parliament has adopted the Investment Firm Directive (IFD3) and the Investment Firm Regulation (IFR4).  

1 Directive 2013/36/EU
2 Regulation (EU) No 575/2013
3 Directive (EU) 2019/2034
4 Regulation (EU) 2019/2033

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Performance magazine issue 33, September 2020

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.

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