Summary
This regulation sets new, proportionate financial rules for investment firms in the EU to ensure they manage risks and maintain enough capital. 10 11.11.2020
Other
finance
economy
public administration
business and competition
financial institutions and credit
Key points
- The regulation introduces specific rules for investment firms that are different from those applied to traditional banks.
- Small and non-interconnected firms benefit from simplified rules and lower capital requirements.
- A new system of risk measurement, known as K-factors, will be used to determine capital needs based on client assets and trading activities.
- Firms must maintain a specific amount of liquid assets to ensure they can meet their obligations at all times.
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