Spe­cif­ic pruden­tial frame­work for invest­ment firms


The European Com­mis­sion is under­tak­ing a fun­da­ment­al review on the pruden­tial regime for (MiFID) invest­ment firms. This is rel­ev­ant for all non-bank firms under­tak­ing invest­ment ser­vices and activ­it­ies.

The pro­pos­als are com­prised of a Reg­u­la­tion on the pruden­tial require­ments of invest­ment firms and a Dir­ect­ive on the pruden­tial super­vi­sion of invest­ment firms. It is import­ant to note that although the pro­pos­als are meant to ease the bur­den for invest­ment firms, as the pro­pos­als cur­rently stand for some invest­ment firms the cap­it­al require­ments will increase.

A polit­ic­al agree­ment has been reached between the European Com­mis­sion, European Par­lia­ment and the Coun­cil about the pro­pos­als on 26 Feb­ru­ary 2019. It is likely that the new require­ments will come into effect in late 2020.


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Emanuel van Praag

emanuel.van.praag@hvglaw.nl +31 6 29 08 40 45