Building on the momentum of CRD II and CRD III reforms, CRD IV implemented the Basel III reforms with a package of measures designed to reduce instability in the banking sector. Like the original CRD, CRD IV was designed primarily with credit institutions in mind but also applies to investment firms.
This course is designed to look at the impact of CRD IV on investment firms. Although looking initially very similar to the original CRD, CRD IV introduces a package of new definitions which firms will need to examine carefully to ensure they still apply to a firm and if the impact has changed as a result of the definition changes.
CRD IV is actually two distinct documents – the CRD IV Directive itself and the very prescriptive Capital Requirements Regulation (“CRR”). Being directly applicable, the CRR doesn’t have a transposing piece of Irish legislation but needs to be read directly.
The CRR deals with:
the definition of regulatory capital
disclosures made by firms under Pillar 3
quality of capital
quantity of capital
counterparty credit risk (CCR)
credit valuation adjustment (CVA) risk
The CRD IV Directive deals with:
authorisation of institutions
passporting rights for institutions
certain remuneration provisions
The course will examine both CRR and the CRD IV Directive (as transposed). In addition the course will consider the framework of over 100 Implementing Technical Standards and Regulatory Technical Standards established by the Directive.