Review of the prudential framework for investment firms

European Commission

Date: 02 January 2018

On 20 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 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 (MiFID II/MiFIR).

Feedback can be provided on the proposal from 21 December 2017 to 27 February 2018.