PART 3Countercyclical Capital Buffer
CHAPTER 4Institution-specific countercyclical capital buffers
Exemption for small and medium-sized investment firms20
1
The FCA may exempt a small or medium-sized investment firm, or small or medium-sized investment firms of a specified description, from the requirement to maintain an institution-specific countercyclical capital buffer where such an exemption does not threaten the stability of the financial system of the United Kingdom.
2
Where the FCA decides to grant such an exemption, its decision must—
a
contain an exact definition of the small and medium-sized investment firms which are exempted;
b
be fully reasoned; and
c
explain why the exemption does not threaten the stability of the financial system of the United Kingdom.
3
The FCA must notify a decision to grant an exemption to the European Commission, the ESRB, EBA and the competent authorities of other EEA States which are responsible for the exercise of the duties of a competent authority under the capital requirements directive and capital requirements regulation.