CRD IV: Capital Requirements Directive
The existing Capital Requirements Directive, known as CRD IV, came into effect on 1st January 2014. The UK Regulators (the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are responsible for prudentially regulating firms subject to CRD IV requirements.
CRD IV is the EU implementation of Basel III - which is a global agreement on Banking Supervision in response to the financial crisis, by the Basel Committee .
Within this response are proposals to increase the prudential soundness of banks, and building societies as well as cover certain MiFID investment firms within the European Union.
CRD IV is made up of:
The Capital Requirements Directive (2013/36/EU) (CRD) which must be implemented through national law; and
The Capital Requirements Regulation (575/2013) (CRR), which is directly applicable to firms across the EU.