The Capital Requirements Regulations 2013
| Jurisdiction | UK Non-devolved |
| Citation | SI 2013/3115 |
| Year | 2013 |
2013 No. 3115
Financial Services And Markets
The Capital Requirements Regulations 2013
Made 9th December 2013
Laid before Parliament 10th December 2013
Coming into force in accordance with regulation 1
The Treasury are designated1for the purposes of section 2(2) of the European Communities Act 19722in relation to financial services.
The Treasury, in exercise of the powers conferred by—
(a) section 2(2) of the European Communities Act 1972; and
(b) sections 349(1)(b), 349(2), 349(3) and 428(3) of, and paragraphs 13(1)(b)(iii), 14(1)(b), 17(a), 17(b), 17(c), 18 and 22 of Schedule 3 to, the Financial Services and Markets Act 20003;
make the following Regulations:
PART 1
Introductory provisions
Citation, commencement and expiry
1.—(1) These Regulations may be cited as the Capital Requirements Regulations 2013.
(2) Subject to paragraph (3), these Regulations come into force on 1st January 2014.
(3) The Regulations specified in the first column of Schedule 1 (CRD transitional arrangements) come into force on the dates specified in the second column or cease to have effect on the dates specified in the third column.
Interpretation
2.—(1) In these Regulations—
“appropriate regulator” means the PRA in relation to a PRA-authorised person and the FCA in relation to any other person;
“Bank” means the Bank of England;
“capital requirements directive” means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/ECand repealing Directives 2006/48/ECand 2006/49/EC4;
“capital requirements regulation” means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/20125;
“EBA Regulation” means Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/ECand repealing Commission Decision 2009/78/EC6;
“EEA consolidating supervisor” means the competent authority responsible under the capital requirements directive for the exercise of supervision on a consolidated basis of—
(a) an EEA parent institution; or
(b) institutions controlled by an EEA parent financial holding company or EEA parent mixed financial holding company;
“EEA parent institution” means a parent institution in an EEA State which is not a subsidiary of another institution authorised in any EEA State or of a financial holding company or mixed financial holding company set up in any EEA State;
“EIOPA” means the European Insurance and Occupational Pensions Authority established under the EIOPA Regulation;
“EIOPA Regulation” means Regulation (EU) 1094/2010 of 24 November 2010 of the European Parliament and of the Council establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/ECand repealing Commission Decision 2009/79/EC7;
“ESRB” means the European Systemic Risk Board established under the ESRB Regulation;
“ESRB Regulation” means Regulation (EU) No 1092/2010 of 24 November 2013 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board8;
“FSMA” means the Financial Services and Markets Act 2000;
“group” means a group whose members include one or more institutions;
“home EEA State” means the EEA State in which an institution has been granted authorisation;
“host EEA State” means an EEA State in which an institution has a branch or in which it provides services;
“national consolidating supervisor” means the competent authority responsible under the capital requirements directive for the exercise of supervision on a consolidated basis of—
(a) a parent institution in an EEA State; or
(b) institutions controlled by a parent financial holding company in an EEA State or a parent mixed financial holding company in an EEA State;
“parent institution in an EEA State” means an institution which has an institution or financial institution as a subsidiary or which holds a participation (within the meaning of Article 4(1)(35) of the capital requirements regulation) in an institution or financial institution, and which is not itself a subsidiary of another institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company set up in the same EEA State;
“parent financial holding company in an EEA State” means a financial holding company which is not itself a subsidiary of an institution authorised in the same EEA State, or of another financial holding company or mixed financial holding company set up in the same EEA State;
“parent mixed financial holding company in an EEA State” means a mixed financial holding company which is not itself a subsidiary of an institution authorised in the same EEA State, or of another mixed financial holding company or financial holding company set up in the same EEA State;
“relevant competent authority” means a competent authority which is not the EEA consolidating supervisor and which has authorised a subsidiary of an EEA parent institution, a subsidiary of an EEA parent financial holding company or a subsidiary of a EEA parent mixed financial holding company.
(2) Except as provided by paragraph (1)—
(a)
(a) any expression used in these Regulations which is defined in Article 4 (definitions) of the capital requirements regulation or Article 3 (definitions) of the capital requirements directive has the meaning which it is given in that Article9;
(b)
(b) any other expression used in these Regulations which is defined in section 417 (definitions) of FSMA has the meaning given by that section10.
PART 2
Capital Requirements Regulations 2006: revocation
Capital Requirements Regulations 2006: revocation
3. The Capital Requirements Regulations 200611are revoked.
PART 3
Designation of competent authorities
Main provisions of the capital requirements directive and capital requirements regulation
4. For the purposes of every provision of the capital requirements directive and capital requirements regulation—
(a) the PRA is responsible for all the functions of a competent authority in respect of PRA-authorised persons; and
(b) the FCA is responsible for all the functions of a competent authority in respect of any other person.
Capital buffers and Article 458 of the capital requirements regulation
5. Nothing in regulation 4 has the effect of designating the PRA or the FCA as the designated authority for the purposes of Chapter 4 of Title 7 of the capital requirements directive (capital buffers) or Article 458 of the capital requirements regulation12.
PART 4
PRA and FCA: cooperation and co-ordination
Co-operation within the European System of Financial Supervision
6. The appropriate regulator must, in the exercise of its duties as a competent authority under the capital requirements directive and the capital requirements regulation—
(a) take into account any convergence in relation to the use of supervisory tools and supervisory practices in the application of the capital requirements directive and the capital requirements regulation, and for that purpose must—
(i) co-operate with trust and full mutual respect with other competent authorities designated for the purposes of the capital requirements directive and capital requirements regulation, in particular when ensuring the flow of appropriate and reliable information between themselves and other members of the European System of Financial Supervision (referred to in Article 2(2) of the EBA Regulation);
(ii) co-operate with and participate in the activities of EBA and, as appropriate, the colleges of supervisors;
(iii) in accordance with Article 16 of the EBA Regulation, make every effort to comply with the guidelines and recommendations issued by EBA and respond to the warnings and recommendations issued by the ESRB pursuant to Article 16 of the ESRB Regulation; and
(iv) co-operate closely with the ESRB; and
(b) duly consider the potential impact of their decisions on the stability of the financial system in other EEA States, such consideration, in emergency situations, to be based on the information available at the relevant time.
Co-operation with EBA
7.—(1) The appropriate regulator must provide EBA with all the information necessary to carry out its duties under the capital requirements directive, the capital requirements regulation and the EBA Regulation.
(2) The appropriate regulator must inform EBA in advance of any meetings relating to the development and co-ordination of the recovery and resolution plans referred to in Article 74(4) of the capital requirements directive, including the main issues to be discussed and the activities to be considered, and invite EBA to participate in those meetings.
Information gathering, planning and co-ordination duties
8.—(1) The appropriate regulator must co-operate closely with other relevant competent authorities in the EEA and (where appropriate) the EEA consolidating supervisor and provide them with all information which is essential for, or relevant to, the exercise of their supervisory tasks.
(2) For the purposes of...
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