Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014 (Text with EEA relevance) (c. 2033)

1. Introductory Text

2. PART ONE GENERAL PROVISIONS

   1. TITLE I SUBJECT MATTER, SCOPE AND DEFINITIONS

      1. Article 1. Subject matter and scope

      2. Article 2. Supervisory powers

      3. Article 3. Application of stricter requirements by investment firms

      4. Article 4. Definitions

   2. TITLE II LEVEL OF APPLICATION OF REQUIREMENTS

      1. CHAPTER 1 Application of requirements on an individual basis

         1. Article 5. General principle

         2. Article 6. Exemptions

      2. CHAPTER 2 Prudential consolidation and exemptions for an investment firm group

         1. Article 7. Prudential consolidation

         2. Article 8. The group capital test

3. PART TWO OWN FUNDS

   1. Article 9. Own funds composition

   2. Article 10. Qualifying holdings outside the financial sector

4. PART THREE CAPITAL REQUIREMENTS

   1. TITLE I GENERAL REQUIREMENTS

      1. Article 11. Own funds requirements

      2. Article 12. Small and non‐interconnected investment firms

      3. Article 13. Fixed overheads requirement

      4. Article 14. Permanent minimum capital requirement

   2. TITLE II K-FACTOR REQUIREMENT

      1. CHAPTER 1 General principles

         1. Article 15. K‐factor requirement and applicable coefficients

      2. CHAPTER 2 RtC K‐factors

         1. Article 16. RtC K‐factor requirement

         2. Article 17. Measuring AUM for the purpose of calculating K‐AUM

         3. Article 18. Measuring CMH for the purpose of calculating K‐CMH

         4. Article 19. Measuring ASA for the purpose of calculating K‐ASA

         5. Article 20. Measuring COH for the purpose of calculating K‐COH

      3. CHAPTER 3 RtM K‐Factors

         1. Article 21. RtM K‐factor requirement

         2. Article 22. Calculating K‐NPR

         3. Article 23. Calculating K‐CMG

      4. CHAPTER 4 RtF K‐factors

         1. Article 24. RtF K‐factor requirement

         2. Section 1 Trading counterparty default

            1. Article 25. Scope

            2. Article 26. Calculating K‐TCD

            3. Article 27. Calculation of exposure value

            4. Article 28. Replacement cost (RC)

            5. Article 29. Potential future exposure

            6. Article 30. Collateral

            7. Article 31. Netting

            8. Article 32. Credit valuation adjustment

         3. Section 2 Daily trading flow

            1. Article 33. Measuring DTF for the purpose of calculating K‐DTF

      5. CHAPTER 5 Environmental and social objectives

         1. Article 34. Prudential treatment of assets exposed to activities associated with environmental or social objectives

5. PART FOUR CONCENTRATION RISK

   1. Article 35. Monitoring obligation

   2. Article 36. Calculation of the exposure value

   3. Article 37. Limits with regard to concentration risk and exposure value excess

   4. Article 38. Obligation to notify

   5. Article 39. Calculating K‐CON

   6. Article 40. Procedures to prevent investment firms from avoiding the K‐CON own funds requirement

   7. Article 41. Exclusions

   8. Article 42. Exemption for commodity and emission allowance dealers

6. PART FIVE LIQUIDITY

   1. Article 43. Liquidity requirement

   2. Article 44. Temporary reduction of the liquidity requirement

   3. Article 45. Client guarantees

7. PART SIX DISCLOSURE BY INVESTMENT FIRMS

   1. Article 46. Scope

   2. Article 47. Risk management objectives and policies

   3. Article 48. Governance

   4. Article 49. Own funds

   5. Article 50. Own funds requirements

   6. Article 51. Remuneration policy and practices

   7. Article 52. Investment policy

   8. Article 53. Environmental, social and governance risks

8. PART SEVEN REPORTING BY INVESTMENT FIRMS

   1. Article 54. Reporting requirements

   2. Article 55. Reporting requirements for certain investment firms, including for the purposes of the thresholds referred to in Article 1(2) of this Regulation and in point (1)(b) of Article 4(1) of Regulation (EU) No 575/2013

9. PART EIGHT DELEGATED ACTS

   1. Article 56. Exercise of the delegation

10. PART NINE TRANSITIONAL PROVISIONS, REPORTS, REVIEWS AND AMENDMENTS

    1. TITLE I TRANSITIONAL PROVISIONS

       1. Article 57. Transitional provisions

       2. Article 58. Derogation for undertakings referred to in point (1)(b) of Article 4(1) of Regulation (EU) No 575/2013

       3. Article 59. Derogation for investment firms referred to in Article 1(2)

    2. TITLE II REPORTS AND REVIEWS

       1. Article 60. Review clause

    3. TITLE III AMENDMENTS TO OTHER REGULATIONS

       1. Article 61. Amendment to Regulation (EU) No 1093/2010

       2. Article 62. Amendments to Regulation (EU) No 575/2013

       3. Article 63. Amendments to Regulation (EU) No 600/2014

       4. Article 64. Amendment to Regulation (EU) No 806/2014

11. PART TEN FINAL PROVISIONS

    1. Article 65. References to Regulation (EU) No 575/2013 in other Union legal acts

    2. Article 66. Entry into force and date of application

12. Signature