Review of the prudential framework for investment firms

In December 2017 the European Commission adopted a proposal for a regulation and a proposal for a directive to amend the current EU prudential rules for investment firms. The aim of the review is to introduce more proportionate and risk-sensitive rules for investment firms. Under these proposals, the vast majority of investment firms in the EU would no longer be subject to rules that were originally designed for banks. At the same time, the largest and most systemic investment firms would be subject to the same regime as European banks.

The two acts would amend the existing prudential framework for investment firms set out in the capital requirements directive and regulation (CRD IV/CRR) and in the markets in financial instruments directive and regulation (MiFID2/MiFIR).

• Proposal for a regulation on the prudential requirements of investment firms and amending Regulations (EU) No 575/2013, (EU) No 600/2014 and (EU) No 1093/2010
• Proposal for a directive on the prudential supervision of investment firms and amending Directives 2013/36/EU and 2014/65/EU
• Commission staff working document: Review of the prudential framework for investment firms, accompanying the proposals for a regulation and directive on the prudential requirements and supervision of investment firms
• Press release
• Frequently asked questions
• Factsheet

On 26 February 2019 the European Parliament and the Member States reached a political agreement on this proposal.

• Press release - 26 February 2019

On 18 April 2019, the European Parliament endorsed the proposal.

• Press release on the final vote on the proposal