Prudential regulation of credit institutions and investment firms

Exclusion of certain investment firms from the Capital Requirements Regulation
1
1
Article 4(1) of the Capital Requirements Regulation (definitions) is amended in accordance with subsections (2) to (6).
2
In point (2) (definition of “investment firm”), for the words from “excluding” to the end substitute “other than a credit institution”.
3
In point (2A) (definition of “CRR firm”), in paragraph (a)(ii), for “an investment firm” substitute “a designated investment firm”.
4
After point (2A) insert—
2AA
‘designated investment firm’ means an investment firm that is for the time being designated by the PRA under article 3 of the Financial Services and Markets Act 2000 (PRA-regulated Activities) Order 2013 (S.I. 2013/556), but is not—
a
a commodity and emission allowance dealer,
b
a collective investment undertaking, or
c
an insurance undertaking;
2AB
‘FCA investment firm’ means an investment firm that—
a
is an authorised person within the meaning of section 31(1)(a) of FSMA, and
b
is not a designated investment firm;
.
5
In point (3) (definition of “institution”), for “an investment firm” substitute “a designated investment firm”.
6
At the end insert—
150
‘commodity and emission allowance dealer’ means an undertaking the main business of which consists exclusively of the provision of investment services or activities in relation to—
a
commodity derivatives or commodity derivative contracts referred to in paragraphs 5, 6, 7, 9 and 10 of Part 1 of Schedule 2 to the Regulated Activities Order,
b
derivatives of emission allowances referred to in paragraph 4 of that Part of that Schedule, or
c
emission allowances referred to in paragraph 11 of that Part of that Schedule.
7
In Schedule 1—
a
Part 1 contains consequential amendments of the Capital Requirements Regulation, and
b
Part 2 contains consequential amendments of the Capital Requirements (Country-by-Country Reporting) Regulations 2013 (S.I. 2013/3118).