What changes are happening now - CRD II and CRD III

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      - What changes are happening now CRD II and CRD III

CRD II and CRD III – Current status

During 2010, the European Commission agreed a series of amendments, referred to as CRD II and III.

CRD II

CRD II changes were implemented on 31 December 2010 and the FSA Handbook updated accordingly.

CRD III
We consulted on CRD III changes via a Consultation Paper, CP11/09, in May 2011, which was an update of our Consultation Paper CP09/29.

The CP proposals included:

strengthening the capital requirements for the trading book;
imposing higher capital requirements for (re-)securitisations;
extending the prudent valuation framework;
requiring enhanced public disclosures under Pillar 3 of the capital framework;
amending our rules for various technical amendments to the CRD; and
changes to our reporting rules to require from firms the information necessary to supervise the trading book and securitisation changes.

The rules come into effect on 31 December 2011.