Approach to Implementing CRD IV Transitional Provisions – FSA Announcement

more+
less-

On October 30, the FSA announced its approach to implementing the transitional provisions in the proposed Capital Requirements Directive IV framework (CRD IV). The announcement, published on an FSA webpage, was made in advance of political agreement having been reached on the final CRD IV legislation, highlighting the FSA’s recognition of the importance of these measures to firms’ capital planning.

The FSA confirmed that it expects to exceed the minimum transitional standards relating to the following deductions from Common Equity Tier 1 capital:

  • deductions of interim losses in respect of firms regulated by the new Prudential Regulation Authority;
  • investment in own shares not previously removed to meet accounting standards; and
  • deferred tax assets not arising from timing differences.

A formal consultation on the proposals will be undertaken by the FSA once the final CRD IV legislation has been adopted.

 

Topics:  Capital Requirements, Financial Services Authority

Published In: Administrative Agency Updates, Business Organization Updates, Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Orrick - Structured Finance Group | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »