The Capital Requirements Directive (CRD) amends two existing EU Directives, the Bank Consolidation Directive and the Capital Adequacy Directive and introduces a supervisory framework in the EU which reflects the Basel II rules on capital measurement, adequacy and related market disclosure disciplines.
Investment firms will need to consider the CRD requirements carefully. Depending on the type of firm they may require additional capital to cover minimum capital requirements or to cover operational risk.
The key benefits for investment firms who comply with the CRD requirements include:
- Improved risk-management and internal control processes
- Ability to enhance strategic and tactical decision-making and optimise corporate value
- Enhanced, and more timely, capacity to identify threats and weaknesses, as well as opportunities
- Alignment of risk appetite with capital allocation
- Facility to communicate tangible and quantifiable risk-management and capital adequacy information to stakeholders
How can PricewaterhouseCoopers help?
At PricewaterhouseCoopers, we have a team of regulatory compliance specialists who, using their extensive knowledge and experience of regulatory rules, codes of conduct and prudential supervision, offer practical support and solutions to our clients, in a down-to-earth manner.
