The Changing Environment Of Regulatory Reporting

The EC has responded to the recommendations of the Basel Committee on banking supervision with the introduction of the CRD IV package.

The implementation of the Capital Requirements Directive (CRD) and the Capital Requirements Regulation (CRR) (together known as the CRD IV package (CRD IV)) will create a new regulatory reporting environment. CRD IV is the EC's response to the standards recommended by the Basel Committee on banking supervision, known as Basel III. The CRR includes changes to the Pillar 1 and Pillar 3 requirements which will be directly applicable to firms in the UK and will not be incorporated into the FSA handbook. Implementation will therefore take place via the introduction of a single European rule book for financial services. Those changes affecting Pillar 2 will, however, need to be incorporated into the FSA handbook. The CRD IV package also includes proposals on corporate governance and remuneration.