The Capital Requirements (Amendment) (EU Exit) Regulations 2018

Made: 19th December 2018

Coming into force in accordance with regulation 1

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PART 1 — Introduction

Citation and commencement

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Interpretation

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PART 2 — Amendment of secondary legislation: European Communities Act 1972

2008 Regulations

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2013 Regulations

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2013 Reporting Regulations

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2014 Regulations

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PART 3 — Amendment of secondary legislation: European Union (Withdrawal) Act 2018

CHAPTER 1 — Amendment of 2008 Regulations

Amendments to the Regulated Covered Bonds Regulations 2008

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Regulation 2 (eligible property)

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Regulation 41 (notification of the Commission)

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CHAPTER 2 — Amendment of 2013 Regulations

Amendments to the Capital Requirements Regulations 2013

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Regulation 2 (interpretation)

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Regulation 2A (insertion of new paragraph)

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Regulation 4 (main provisions)

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Regulation 5 (capital buffers and Article 458 of the capital requirements regulation)

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Regulations 6 (co-operation within the European System of Financial Supervision) to 17 (Duties to notify EBA and EIOPA)

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Regulations 18 (general disclosures required of PRA and FCA) to 19 (specific disclosures required of the PRA and FCA)

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Regulation 20 (determination of the consolidating supervisor)

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Regulation 21 (assessment of equivalent of consolidated supervision by supervisory authorities in non-EEA states)

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Regulations 22 (co-ordination and co-operation arrangements) to 33 (colleges of supervisors)

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Regulation 34 (supervisory powers: own funds)

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Regulations 34A and 34B (insertion of new paragraphs)

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Regulation 35 (specific liquidity requirements)

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Regulation 35A (insertion of new paragraphs)

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Regulation 36 (employee remuneration)

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Regulation 37 (diversity practices)

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Regulation 38 (consultation with the EBA)

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Regulation 39 (meaning of “permission” and “protected item” in this part)

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Regulation 45 (misleading the PRA or FCA)

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CHAPTER 3 — Amendment of the 2013 Reporting Regulations

Amendments to the Capital Requirements (Country-by-Country Reporting) Regulations 2013

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Regulation 1 (citation, commencement and interpretation)

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Regulation 2 (ongoing reporting obligation)

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Regulation 3 (interim reporting obligation)

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Regulation 5 (prior disclosure: prevention of duplication)

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CHAPTER 4 — Amendment of the 2014 Regulations

Amendments to the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014

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Regulation 2 (interpretation)

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Regulation 6 (exemption for small and medium-sized investment firms)

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Chapter 1, Part 3 (designated authority and interpretation)

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Regulation 7 (designated authority)

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Regulation 8 (meaning of “UK institution”)

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Regulation 9 (the buffer guide)

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Regulation 10 (countercyclical buffer rate)

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Regulation 12 (announcement of changes to the buffer rate)

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Regulation 12A (insertion of new paragraph)

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Regulation 14 (buffer rates for EEA exposures)

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Regulation 15 (buffer rates for exposures outside the EEA)

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Regulation 17 (date of application of buffer rates)

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Regulation 18 (announcement of changes to buffer rates)

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Regulation 20 (exemption for small and medium-sized investment firms)

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Regulation 21 (designated authority)

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Regulation 22 (G-SIIs: location and nature)

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Regulation 23 (identification methodology)

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Regulation 24 (sub-categories of G-SII and corresponding buffer rates)

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Regulation 26 (notification, publication and review)

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Regulation 28 (transitional provision: 1st January 2016 to 31st December 2019)

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Regulation 29 (designated authority)

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Regulation 30 (O-SIIs: location and nature)

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Regulation 31 (identification of O-SIIs)

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Regulation 32 (notification, publication and review)

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Regulation 34 (no requirement to maintain an O-SII buffer)

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Part 5A (Systemic Risk Buffer)

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PART 4 — Amendment of retained direct EU legislation

CHAPTER 1 — Amendment of the Capital Requirements Regulation

Amendments to the Capital Requirements Regulation

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Article 1 (scope)

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Article 2 (supervisory powers)

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Article 4(1) (definitions)

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Article 4(2) (definitions)

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Article 4A and 4B (insertion of new paragraphs)

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Article 6 (general principles)

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Article 7 (derogation from the application of prudential requirements on an individual basis)

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Article 8 (derogation from the application of liquidity requirements on an individual basis)

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Article 9 (individual consolidation method)

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Article 10 (waiver for credit institutions permanently affiliated to a central body)

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Article 11 (general treatment)

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Article 13 (application of disclosure requirements on a consolidated basis)

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Article 14 (application of requirements of Part Five on a consolidated basis)

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Article 15 (derogation from the application of own funds requirements on a consolidated basis for groups of investment firms)

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Article 17 (supervision of investment firms waived from the application of own funds requirements on a consolidated basis)

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Article 18 (methods for prudential consolidation)

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Article 19 (entities excluded from the scope of prudential consolidation)

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Article 20 (joint decisions on prudential requirements)

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Article 21 (joint decisions on the level of application of liquidity requirements)

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Article 23 (undertakings in third countries)

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Article 26 (Common Equity Tier 1 items)

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Article 27 (capital instruments of mutual, cooperative societies, savings institutions or similar institutions in Common Equity Tier 1 items)

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Article 28 (Common Equity Tier 1 instruments)

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Article 29 (capital instruments issued by mutuals, cooperative societies, savings institutions and similar institutions)

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Article 31 (capital instruments subscribed by public authorities in emergency situations)

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Article 33 (cash flow hedges and changes in the value of own liabilities)

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Article 36 (deductions from Common Equity Tier 1 items)

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Article 38 (deduction of deferred tax assets that rely on future profitability)

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Article 39 (tax overpayments, tax loss carry backs and deferred tax assets that do not rely on future profitability)

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Article 49 (requirement for deduction where consolidation, supplementary supervision or institutional protection schemes are applied)

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Article 52 (additional Tier 1 instruments)

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Article 77 (conditions for reducing own funds)

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Article 78 (supervisory permission for reducing own funds)

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Article 80 (continuing review of quality of own funds)

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Article 81 (minority interests that qualify for inclusion in consolidated Common Equity Tier 1 capital)

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Article 82 (qualifying Additional Tier 1, Tier 1, Tier 2 capital and qualifying own funds)

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Article 84 (minority interests included in consolidated Common Equity Tier 1 capital)

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Article 85 (qualifying Tier 1 instruments included in consolidated Tier 1 capital)

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Article 87 (qualifying own funds included in consolidated own funds)

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Article 89 (risk weighting and prohibition of qualifying holdings outside the financial sector)

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Article 91 (exceptions)

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Article 95 (own funds requirements for investment first with limited authorisation to provide investment services)

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Article 96 (own funds requirements for investment firms which hold initial capital)

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Article 97 (own funds based on fixed overheads)

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Article 98 (own funds for investment firms on a consolidated basis)

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Article 99 (reporting on own funds requirements and financial information)

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Article 100 (additional reporting requirements)

108

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Article 101 (specific reporting requirements)

109

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Article 107 (approaches to credit risk)

110

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Article 113 (calculation of risk weighted exposure amounts)

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Article 114 (exposures to central governments or central banks)

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Article 115 (exposures to regional governments or local authorities)

113

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Article 116 (exposures to public sector entities)

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Article 117 (exposures to multilateral development banks)

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Article 118 (exposures to international organisations)

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Article 119 (exposures to institutions)

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Article 123 (retain exposures)

118

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Article 124 (exposures secured by mortgages on immovable property)

119

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Article 125 (exposures fully and completely secured by mortgages on residential property)

120

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Article 126 (exposures fully and completely secured by mortgages on commercial immovable property)

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Article 128 (items associated with particular high risk)

122

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Article 129 (exposures in the form of covered bonds)

123

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Article 132 (exposures in the form of units or shares in CIUs)

124

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Article 134 (other items)

125

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Article 135 (use of credit assessments by ECAIs)

126

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Article 138 (general requirements)

127

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Article 142 (definitions)

128

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Article 150 (conditions for permanent partial use)

129

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Article 154 (risk weighted exposure amounts for retail exposures)

130