European Union (Capital Requirements) Regulations 2014.

• Statutory Instrument No.: 158/2014
• Published date: 04 April 2014

CONTENTS

Regulation

Part 1

Preliminary and General

1. Citation and commencement

2. Scope

3. Interpretation

Part 2

Competent Authority

4. Designation of competent authority

5. Cooperation within the European System of Financial Supervision

6. European Union dimension of supervision

Part 3

Requirements for access to the activity of credit institutions

Chapter 1

General requirements for access to the activity of credit institutions

7. Branches of credit institutions authorised in another Member State

8. Name of credit institutions

9. Notification where Bank acts as consolidating supervisor

Chapter 2

Qualifying holding in a credit institution

10. Restrictions on acquiring and disposing of qualifying holdings in credit institutions

11. Application to court where no notification given

12. Notification in case of divestiture

13. Credit institutions to provide information on certain acquisitions and disposals

14. Period for assessment of proposed acquisition

15. Assessment of proposed acquisition

16. Bank to cooperate with competent authorities of other Member States in certain cases

17. Bank may fix period for completion of acquisition, etc.

18. Notice of Bank’s decision

19. Bank may oppose certain acquisitions

20. Decision to oppose proposed acquisition to be appealable

21. Circumstances in which proposed acquisition may be concluded

22. Effect of section 201 of Companies Act 1963

23. Credit institutions to provide information about shareholdings, etc.

24. Powers in relation to certain persons with qualifying holdings

25. Criteria for qualifying holdings

Part 4

Initial capital of investment firms, local firms and firms not authorised to hold client money or securities

26. Initial capital for investment, local and other firms

27. Initial capital for particular types of investment firms

28. Initial capital for local firms

29. Coverage for firms not authorised to hold client money or securities

30. Own funds of investment firms and firms covered by Regulation 28

31. Grandfathering provision

Part 5

Freedom of establishment and freedom to provide services

Chapter 1

General principles

32. Mutual recognition of provision of banking services

Chapter 2

The right of establishment of credit institutions

33. Provisions relating to the establishment of a branch in another Member State

34. Provisions relating to the establishment in the State of a branch from another Member State

35. Change in information provided under Regulation 33

36. Existing branches

37. Information about refusals

Chapter 3

Freedom to provide services

38. Notification procedure

Chapter 4

Powers of the Bank when acting as host Member State competent authority

39. Reporting requirements

40. Measures taken by the competent authorities of the home Member State in relation to activities carried out in the host Member State

41. Reasons and communication

42. Precautionary measures

43. Measures following withdrawal of authorisation

44. Advertising

Part 6

Prudential Supervision

Chapter 1

Principles of prudential supervision

Competence and duties of home and host Member States

45. Competence of the Bank

46. Collaboration concerning supervision

47. Designation of branch of institution in State as significant

48. Designation of branch of an institution in another Member State as significant

49. Bank to establish college of supervisors for significant branches

50. On-the-spot checking and inspection of branches established in another Member State

51. Processing of personal data

52. Duty of persons responsible for the legal control of annual and consolidated accounts

53. Administrative penalties and other administrative measures

54. Administrative penalties and other administrative measures for breaches of authorisation requirements and requirements for acquisitions of qualifying holdings

55. Other provisions on administrative penalties

56. Publication of administrative penalties

57. Exchange of information on penalties and maintenance of central database by EBA

58. Effective application of penalties and exercise of powers to impose penalties by Bank

59. Reporting of breaches

Chapter 2

Review Processes

Internal capital adequacy assessment process

60. Internal Capital

Arrangements, processes and mechanisms of institutions

General principles

61. Internal governance and recovery plans

62. Resolution plans

63. Oversight of remuneration policies

64. Treatment of risks — risk committee and combined committee

65. Internal approaches for calculating own funds requirements

66. Supervisory benchmarking of internal approaches for calculating own funds requirements

67. Credit and counterparty risk

68. Residual risk

69. Concentration risk

70. Securitisation risk

71. Market risk

72. Interest risk arising from non-trading book activities

73. Operational risk

74. Liquidity risk

75. Risk of excessive leverage

Governance

76. Governance arrangements

77. Country-by-country reporting

78. Public disclosure of return on assets

79. Management body

80. Remuneration policies

81. Institutions that benefit from government intervention

82. Variable elements of remuneration

83. Remuneration committee

84. Maintenance of website on corporate governance and remuneration

Supervisory review and evaluation process

85. Supervisory review and evaluation

86. Technical criteria for the supervisory review and evaluation

87. Supervisory examination programme

88. Supervisory stress testing

89. Ongoing review of the permission to use internal approaches

Supervisory measures and powers

90. Supervisory measures

91. Application of supervisory measures to institutions with similar risk profiles

92. Supervisory powers

93. Specific liquidity requirements

94. Specific publication requirements

95. Consistency of supervisory reviews, evaluations and supervisory measures

Level of application

96. Internal capital adequacy assessment process

97. Institutions’ arrangements, processes and mechanisms

98. Review and evaluation and supervisory measures

Chapter 3

Supervision on a consolidated basis

Principles for conducting supervision on a consolidated basis

99. Determination of consolidating supervisor

100. Coordination of supervisory activities by consolidating supervisor

101. Joint decisions on institution-specific prudential requirements

102. Information requirements in emergency situations

103. Coordination and cooperation arrangements

104. Colleges of supervisors

105. Cooperation obligations

106. Checking information concerning entities in other Member States

Financial holding companies, mixed-financial holding companies and mixed-activity holding companies

107. Inclusion of holding companies in consolidated supervision

108. Supervision of mixed-financial holding companies

109. Qualification of directors

110. Requests for information and inspections

111. Supervision

112. Exchange of information

113. Cooperation

114. Assessment of equivalence of third countries’ consolidated supervision

Chapter 4

Capital Buffers

Buffers

115. Definitions

116. Non-application of Chapter to certain investment firms

117. Requirement to maintain a capital conservation buffer

118. Requirement to maintain institution-specific countercyclical capital buffer

119. Transitional provisions for capital buffers

120. Derogation from requirement to maintain certain buffers

121. Global and other systemically important institutions

122. Identification of O-SIIs

123. G-SII and O-SII buffers

124. Recognition of systemic risk buffer rate

Setting and calculating countercyclical capital buffers

125. Setting countercyclical buffer rates

126. Recognition of countercyclical buffer rates in excess of 2.5 per cent

127. Decision by Bank on third-country countercyclical buffer rates

128. Calculation of institution-specific countercyclical capital buffer rates

Capital conservation measures

129. Restrictions on distributions

130. Capital conservation plan

Part 7

Disclosure by competent authorities

131. General disclosure requirements

132. Specific disclosure requirements

Part 8

Transitional provisions

133. Reporting requirements — transitional

134. Measures taken by competent authorities of home Member State in relation to activities carried out in host Member State — transitional

135. Precautionary measures — transitional

136. Responsibility of Bank — transitional

137. Liquidity supervision — transitional

138. Collaboration concerning supervision — transitional

139. Designation of significant branches — transitional

140. Designation of branch of an institution in another Member State as significant — transitional

141. Bank to establish college of supervisors for significant branches — transitional

142. On-the-spot checks — transitional

Part 9

Provisions from statutory instruments revoked by these Regulations

143. Application of certain enactments

144. Bank not to be liable for losses incurred through insolvency or default of persons subject to supervision under these Regulations

145. Bank to consult competent authorities of other Member States in certain circumstances

146. Provision of services into another Member State

147. Offence of providing false or misleading information — Regulations 10 to 25

148. Provision of false or misleading information — general

149. Prosecution by Bank

150. Offences by bodies corporate

151. Continuation of contravention of Regulations

152. Construction of licence holder in enactments

Part 10

Consequential Amendments

153. Amendment of Central Bank Act 1942

154. Amendment of Central Bank Act 1971

155. Amendment of Central Bank Act 1989

156. Amendment of Building Societies Act 1989

157. Amendment of Trustee Savings Banks Act...