First published on
20 December 2017 (last update on: 18 April 2019)

In December 2017 the European Commission adopted a proposal for a regulation and a proposal for a directive to amend the current EU prudential rules for investment firms. The aim of the review is to introduce more proportionate and risk-sensitive rules for investment firms. Under these proposals, the vast majority of investment firms in the EU would no longer be subject to rules that were originally designed for banks. At the same time, the largest and most systemic investment firms would be subject to the same regime as European banks.

The two acts would amend the existing prudential framework for investment firms set out in the capital requirements directive and regulation (CRD IV/CRR) and in the markets in financial instruments directive and regulation (MiFID2/MiFIR).

On 26 February 2019 the European Parliament and the Member States reached a political agreement on this proposal.

On 18 April 2019, the European Parliament endorsed the proposal.

Related information

  • Prudential rules for investment firms

    Many of the prudential requirements applicable to banks also apply to investment firms and the EU is considering if they are appropriate for them.