In September 2009, the European Parliament and the European Council adopted a Directive amending the Capital Requirements Directive (CRD). The amendments, referred to as "CRD 2", include measures to:

  • Revise rules on the large exposures regime and on derogations for bank networks from prudential requirements.
  • Establish principles and rules on the treatment of hybrid capital instruments within original own funds.
  • Revise the rules related to capital requirements for securitisation positions.
  • Clarify the supervisory framework for crisis management and establish colleges of supervisors to enhance both the efficiency and the effectiveness of supervision.

The amendments to the CRD have to be transposed into domestic law by 31 October 2010 and will be applied from 31 December 2010.

The FSA will implement the majority of the CRD 2 amendments which transpose requirements on firms. The FSA has already published a consultation paper (Consultation Paper 09/29: Strengthening Capital Standards 3).

HM Treasury will implement the remaining areas of CRD 2, which mainly places new duties on the FSA. HM Treasury has now published a consultation document, Implementing amendments to the Capital Requirements Directive, which covers the position. The deadline for comments on the consultation document is 30 March 2010.

View Implementing amendments to the Capital Requirements Directive, 17 December 2010