Prudential regulation of credit institutions and investment firms

I11Exclusion of certain investment firms from the Capital Requirements Regulation

1

Article 4(1) of the Capital Requirements Regulation (definitions) is amended in accordance with subsections (2) to (6).

2

In point (2) (definition of “investment firm”), for the words from “excluding” to the end substitute “ other than a credit institution ”.

3

In point (2A) (definition of “CRR firm”), in paragraph (a)(ii), for “an investment firm” substitute “ a designated investment firm ”.

4

After point (2A) insert—

2AA

‘designated investment firm’ means an investment firm that is for the time being designated by the PRA under article 3 of the Financial Services and Markets Act 2000 (PRA-regulated Activities) Order 2013 (S.I. 2013/556), but is not—

a

a commodity and emission allowance dealer,

b

a collective investment undertaking, or

c

an insurance undertaking;

2AB

‘FCA investment firm’ means an investment firm that—

a

is an authorised person within the meaning of section 31(1)(a) of FSMA, and

b

is not a designated investment firm;

5

In point (3) (definition of “institution”), for “an investment firm” substitute “ a designated investment firm ”.

6

At the end insert—

150

‘commodity and emission allowance dealer’ means an undertaking the main business of which consists exclusively of the provision of investment services or activities in relation to—

a

commodity derivatives or commodity derivative contracts referred to in paragraphs 5, 6, 7, 9 and 10 of Part 1 of Schedule 2 to the Regulated Activities Order,

b

derivatives of emission allowances referred to in paragraph 4 of that Part of that Schedule, or

c

emission allowances referred to in paragraph 11 of that Part of that Schedule.

7

In Schedule 1—

a

Part 1 contains consequential amendments of the Capital Requirements Regulation, and

b

Part 2 contains consequential amendments of the Capital Requirements (Country-by-Country Reporting) Regulations 2013 (S.I. 2013/3118).