The Investment Firms Directive EU/2019/20341 ("IFD")
and the Investment Firms Regulation EU/2019/20332 ("IFR")
(collectively the IFD/IFR regime) introduce a new dedicated
prudential framework for investment firms. New classes of
firm are being introduced and, as a result, most investment firms
will fall outside the scope of the prudential regime that applies
to banks (the CRD IV / CRR framework).
The IFD grants a number of national discretions to EU Member
States, including certain points relating to the remuneration rules
and applicable exemptions.
The Central Bank of Ireland ("Central Bank") stated in
January 2021 that it expected all investment firms to have begun
considering the impact of the IFD/IFR regime, at that stage, and to
have commenced preparations to ensure that they can comply with it
from 26 June 2021.
