Consultation outcome

Implementation of the Investment Firms Prudential Regime and Basel 3 standards consultation

From:
HM Treasury
Published
4 February 2021
Last updated
2 March 2022 — See all updates
This consultation has concluded

Download the full outcome

Implementation of the Investment Firms Prudential Regime and Basel 3 standards: Consultation response

PDF, 300 KB, 22 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email digital.communications@hmtreasury.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Amendment to Section 48D of the Banking Act 2009: consultation response

PDF, 123 KB, 10 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email digital.communications@hmtreasury.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Detail of outcome

The Government ran a consultation on its proposed exercise of the delegated powers provided to HM Treasury by the Financial Services Act 2021 to ensure the effective implementation of the Investment Firms Prudential Regime and the outstanding Basel 3 standards, set by the Basel Committee on Banking Supervision.

The consultation also provided clarity and sought views on the UK’s intended approach to implementation of some areas of the Basel 3 standards by HM Treasury. In several of these areas, following additional evidence provided as part of the consultation, the Government is changing its approach, this document explains these changes. The consultation also sought views on scope of application of the resolution regime for FCA-regulated investment firms.

The Government intends to lay the relevant implementing secondary legislation to a timeline which provides institutions with adequate time to prepare ahead of the 1 January 2022 implementation date.

Ahead of this, the Government has also published a draft statutory instrument that will make amendments to the Financial Services and Markets Act 2000 (PRA-regulated Activities) (Amendment) Order, as a result of the introduction of the Investment Firms Prudential Regime, as well as minor technical changes.

Subsequently, the Government identified a series of consequential amendments necessitated by the removal of FCA investment firms from the UK resolution regime. One amendment required changes to Section 48D of the Banking Act 2009. The Government has now completed a consultation on these proposed changes and confirmed its intention to make this amendment in the consultation response document.

Original consultation

Summary

Seeking views on the UK’s approach to the implementation of the Investment Firms Prudential Regime and the remaining Basel 3 standards.

This consultation ran from
to

Consultation description

This consultation is seeking views on the proposed exercise of the delegated powers provided to HMT by the Financial Services Bill to ensure the effective implementation of the Investment Firms Prudential Regime and the outstanding Basel 3 standards - those contained in the 2nd Capital Requirements Regulation.

This consultation will also provide clarity and seek views on the UK’s intended approach to implementation of some areas of the Basel 3 standards, as well as seeking views on the scope of application of the resolution regime for FCA-regulated investment firms, where HMT is not devolving responsibility to the Regulators.

Documents

Implementation of the Investment Firms Prudential Regime and Basel 3 standards: Consultation

PDF, 298 KB, 28 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email digital.communications@hmtreasury.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Amendment to Section 48D of the Banking Act 2009: consultation

PDF, 191 KB, 14 pages

This file may not be suitable for users of assistive technology.

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email digital.communications@hmtreasury.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.
Published 4 February 2021
Last updated 2 March 2022 + show all updates

  1. Outcome updated

  2. Amendment to Section 48D of the Banking Act 2009: consultation response added

  3. Amendment to Section 48D of the Banking Act 2009: consultation added

  4. 'ISDA’ should read ‘ISDA/AFME joint response’

  5. Consultation response added

  6. First published.