The Commission has published more proposed changes to the CRD. The changes will:  

  • increase capital requirements for resecuritisations;  
  • tighten up disclosure requirements for securitisations;  
  • change the way banks assess trading book risk in respect of stressed market conditions; and  
  • require banks and investment firms to have remuneration policies that do not encourage excessive risk-taking. Banking supervisors will also have powers to sanction banks that do not have acceptable remuneration policies. The proposals complement existing Commission and CEBS initiatives.  

The Commission has published FAQs to go with the proposal, which now goes to Parliament and Council for approval.