PART NINETRANSITIONAL PROVISIONS, REPORTS, REVIEWS AND AMENDMENTS
TITLE ITRANSITIONAL PROVISIONS
Article 57Transitional provisions
1
Articles 43 to 51 shall apply to commodity and emission allowance dealers from 26 June 2026.
2
Until 26 June 2026 or the date of application to credit institutions of the alternative standardised approach set out in Chapter 1a of Title IV of Part Three of the Regulation No (EU) No 575/2013 and the alternative internal model approach set out in Chapter 1b of Title IV of Part Three of the Regulation No EU) No 575/2013, whichever is the later, an investment firm shall apply the requirements set out in Title IV of Part Three of Regulation (EU) No 575/2013, as amended by Regulation (EU) 2019/630 for the purpose of calculating K‐NPR.
3
By way of derogation from points (a) and (c) of Article 11(1), investment firms may apply lower own funds requirements for a period of five years from 26 June 2021, equal to:
a
twice the relevant own funds requirement pursuant to Chapter 1 of Title I of Part Three of Regulation (EU) No 575/2013, subject to Article 93(1) of that Regulation, with reference to levels of initial capital set by Title IV of Directive 2013/36/EU, as amended by Directive (EU) 2019/878, that would have applied if the investment firm had continued to be subject to the own funds requirements of that Regulation as amended by Regulation (EU) 2019/630; or
b
twice the applicable fixed overhead requirement set out in Article 13 of this Regulation, where the investment firm was not in existence on or before 26 June 2021.
4
By way of derogation from point (b) of Article 11(1), investment firms may apply lower own funds requirements for a period of five years from 26 June 2021 as follows:
a
investment firms that were subject only to an initial capital requirement before 26 June 2021 may limit their own funds requirements to twice the applicable initial capital requirement set out in Title IV of Directive 2013/36/EU, as amended by Directive (EU) 2019/878, with the exception of points (b) and (c) of Article 31(1), and Article 31(2) respectively, of that Directive;
b
investment firms that were in existence before 26 June 2021 may limit their permanent minimum capital requirements to those provided for in Article 93(1) of Regulation (EU) No 575/2013, as amended by Regulation (EU) 2019/876, with reference to levels of initial capital set by Title IV of Directive 2013/36/EU, as amended by Directive (EU) 2019/878, that would have applied if the investment firm had continued to be subject to that Regulation, subject to an annual increase in the amount of those requirements of at least EUR 5 000 during the five‐year period;
c
investment firms that were in existence before 26 June 2021, that are not authorised to provide the ancillary services referred to in point (1) of Section B of Annex I to Directive 2014/65/EU, that only provide one or more of the investment services and activities listed in points 1, 2, 4 and 5 of Section A of Annex I to that Directive, that are not permitted to hold client money or securities belonging to their clients and that therefore may not at any time place themselves in debt with those clients, may limit their permanent minimum capital requirement to at least EUR 50 000, subject to an annual increase of at least EUR 5 000 during the five‐year period.
5
The derogations set out in paragraph 4 shall cease to apply where the investment firm has its authorisation extended on or after 26 June 2021 such that a higher amount of initial capital is required in accordance with Article 9 of Directive (EU) 2019/2034.
6
By way of derogation from Article 11, investment firms that were in existence before 25 December 2019 and that deal on own account on markets in financial futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets or deal for the accounts of other members of those markets and are guaranteed by clearing members of the same markets, where responsibility for ensuring the performance of contracts entered into by such investment firms is assumed by clearing members of the same markets, may limit their own funds requirements for a period of five years from 26 June 2021 to at least EUR 250 000, subject to an annual increase of at least EUR 100 000 during the five‐year period.
Irrespective of whether an investment firm referred to in this paragraph makes use of the derogation referred to in the first subparagraph, point (a) of paragraph 4 shall not apply to such an investment firm.