Prudential Rules for Investment Firms: How to tailor a targeted prudential framework?

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Gustav Mahlerlaan 10, Amsterdam, The Netherlands

All investment firms are currently subject to the prudential requirements designed for banks. The European Commission’s proposal for a prudential framework devoted exclusively to investment firms will alter this regime. While the systemically important investment firms remain under the same prudential rules applicable to banks, smaller investment firms will be subject to less stringent requirements. The overarching objectives of the prudential framework are to ensure that the firms have sufficient funds to remain financially viable and avoid contagion to customers and the wider economy. 

Two critical obstacles stand in the way of effectively and efficiently reaching the objectives of this framework, namely the extent to which the rules will be tailored for the different types of investment firms and  the distribution of supervisory powers. These and other obstacles and challenges for the prudential framework for investment firms will be tackled by policy-makers, industry representatives and other experts at this CEPS-ECMI conference, hosted by ABN AMRO Clearing in Amsterdam.


09:30 – 10:00

Registration and coffee

10:00 – 10:15

Welcome remarks
Lieve Vanbockrijck, Chief Financial Officer, ABN AMRO Clearing

10:15 – 11:15

Sesssion I – What prudential rules for investment firms?

In proposing a prudential framework exclusively for investment firms, the European Commission aims to make prudential requirements more proportionate and risk-sensitive for these companies. In particular, the smaller investment firms can benefit under the new regime from less-demanding requirements. The question remains, however, whether the Commission can succeed in creating a risk-sensitive system with less demanding requirements for less-risky firms. Is there a need to further tailor the proposed framework? Could the framework be made more proportionate and risk-sensitive? Does the framework address the inherent risks of investment firms?

  • Mattias Levin, European Commission
  • Paul Rich, Financial Conduct Authority
  • Diederik Dorst, Flow Traders
  • Emmanuel de Fournoux, AMAFI

Moderator: Karel Lannoo, CEPS/ECMI

11:15 – 11:45

Coffee break

11:45 – 12:45

Session II – Which supervisors for investment firms?

Several supervisors have currently duties for investment firms. For example, at EU level the European Securities and Markets Authority (ESMA) has duties under MiFID that regulates the activities and the European Banking Authority (EBA) has duties under CRDIV/CRR that regulate the prudential requirements. Does such dispersion of responsibility contribute to effective and efficient supervision? Should the regulation of investment firms at EU level be consolidated in one supervisory authority? And which institution would be best placed to perform the direct supervision of investment firms at national level?

  • Jasper Jorritsma, Autoriteit Financiële Markten
  • Paul van den Berg, De Nederlandsche Bank
  • Bart Joosen, VU University Amsterdam
  • Martin Koder, London Stock Exchange Group

Moderator: Matthijs Geneste, ABN AMRO Clearing

12:45 – 13:00

Wrap up & closing remarks

  • Karel Lannoo, Chief Executive Officer, CEPS/ECMI
  • Jan Bart de Boer, Chief Commercial Officer, ABN AMRO Clearing

13:00 – 14:00

Sandwich lunch