Educational clinic for investment firms on CRD IV Package

FinanceMalta (FM), in collaboration with the Malta Financial Services Authority (MFSA), is organising an educational clinic for professionals working in investments on the implementation of the Fourth Capital Requirements Directive and the Capital Requirements Regulation, or as it is commonly referred to as the CRD IV Package.

The event is of particular interest to auditors, legal advisers and Category 2 (excluding fund managers) and Category 3 investment service providers. Those who attend will have to opportunity to learn first-hand from the UK Financial Conduct Authority about the UK’s experience on the CRD IV Package, with a special focus on investment firms.

The ‘clinic’ will also provide the audience, in particular the people who are directly affected by the CRR and CRD IV, with an update on the MFSA’s approach to the prudential supervision of CRD IV investment firms in Malta.

The educational clinic will be held on Friday 12 December at 13.15hrs (until 16.30hrs) at the MFSA in Mriehel. It is open to FM members and the financial services community.

In 2013, the original Capital Requirements Directive which previously consisted of two European Directives (Directives 2006/48/EC and 2006/49/EC) was divided into two different legal instruments: the Capital Requirements Regulation (CRR) and the Fourth Capital Requirements Directive (CRD IV), which together are being referred to as “the CRD IV Package”.

The CRR regulates the capital adequacy of credit institutions and investment firms and provides the methodology for calculating the amount of capital that should be held by institutions on an ongoing basis. It also introduces new regulatory requirements for institutions, such as the requirement to hold a sufficient amount of liquid assets to cover liquidity risk and other regulatory measures to prevent institutions from taking on excessive and unsustainable leverage risk.

CRD IV contains less prescriptive rules and includes administrative provisions relating to the powers and responsibilities of the national competent authorities. It strengthens the corporate governance requirements of institutions and introduces a new limit on the variable remuneration (bonus). The Directive also introduces new rules relating to the maintenance of capital buffers, as a result of the transposition of Basel III into EU law.   

Speakers at the conference include Dr Bernice Buttigieg – FM’s Head of Administration; Dr Christopher P. Buttigieg – Director, Securities and Markets Supervision Unit, MFSA – who will give a general overview of regulatory and supervisory developments; Mellyora Ellul – Analyst, Securities and Markets Supervision Unit, MFSA - who will speak about the regulatory framework for CRD IV investment firms in Malta; Andrew Said – Analyst, Securities and Markets Supervision Unit, MFSA – who will talk about the Common Reporting (COREP) Framework; and Stephanie Buhagiar Camilleri – Analyst, Securities and Markets Supervision Unit, MFSA – will discuss the offsite compliance work.

Paul Rich - Senior Manager, Prudential Policy, Policy, Risk and Research Division, Financial Conduct Authority UK will give the UK’s views on the future regulation of investment firms from a prudential perspective.

For further information and to register, visit http://www.financemalta.org/events/event/Educational-Clinic-the-CRD-IV-Package/