IDEAS home Printed from https://ideas.repec.org/a/aza/jfc000/y2019v2i4p380-387.html
   My bibliography  Save this article

A primer in the European Commission’s proposed new prudential rules for investment firms

Author

Listed:
  • Kelly, Ian

Abstract

This paper considers the European Banking Authority (EBA) and European Commission proposals for a new prudential rulebook for investment firms. It is relevant to staff in finance, risk and compliance functions at asset management, securities trading and broker-dealer firms and their advisers. The paper opens by considering the EBA’s objectives in proposing a new prudential regime for investment firms. It then goes on to consider the European Commission’s proposal for new legislation that would give effect to these new requirements. It examines the scope of the new rules and the new categorisation of investment firms. The following requirements of the new rules are considered in detail: capital requirements, internal risk management processes, reporting to regulators, disclosure to the market and the minimum liquid assets buffer. The reader will glean an elementary understanding of the new rule requirements on each of these areas. For readers in the UK, there is an assessment of how changes in the UK’s future relationship with the European Union may have an impact on the introduction of this proposed legislation. Finally, the paper considers the most likely practical impact of the new rules on different types of investment firms.

Suggested Citation

  • Kelly, Ian, 2019. "A primer in the European Commission’s proposed new prudential rules for investment firms," Journal of Financial Compliance, Henry Stewart Publications, vol. 2(4), pages 380-387, June.
    • Handle: RePEc:aza:jfc000:y:2019:v:2:i:4:p:380-387
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/1752/download/
    Download Restriction: Requires a paid subscription for full access.
    File URL: https://hstalks.com/article/1752/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    prudential; asset manager; broker dealer; capital requirements;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • K2 - Law and Economics - - Regulation and Business Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:jfc000:y:2019:v:2:i:4:p:380-387. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.