Exemption for small and medium-sized investment firms
20.—(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.