PILLAR III Disclosure
The Capital Requirements Directive (“CRD”) of the European Union establishes a revised regulatory capital framework across Europe governing the amount and nature of capital credit institutions and investment firms must maintain. In the United Kingdom, the Directive has been implemented by the Financial Conduct Authority (“FCA”) in its regulations through the General Prudential Sourcebook (“GENPRU”) and the Prudential Sourcebook for Banks, Building Societies and Investment Firms (“BIPRU”). The CRD implementation is based on three ‘Pillars’, which form the cornerstones of the process.
Pillar 1 is the prescribed or minimum capital requirement for an authorised Firm to meet its credit, market and operational risk.
Pillar 2 requires a Firm to conduct an assessment known as an Internal Capital Adequacy Assessment Process (ICAAP) that considers risks and uncertainties that are not included in Pillar 1 to determine whether the Pillar 1 capital is adequate to meet its risks; and
Pillar 3 complements the above and requires a Firm to publish certain information about its risks, capital and risk management controls and processes. This information is available here.
Remuneration Code
Investment firms are required under the FCA Handbook (BIPRU 11) to disclose information, including regular, at least annual, updates, regarding their remuneration policy and practices for those categories of staff whose professional activities have a material impact on their risk profile.
The full remuneration disclosure is available here.
Best Execution disclosure
Investment firms are required under MIFID II, to adhere to a best execution policy, and in support of that policy, publish on its website the top five execution trading venues by trading volume on an annual basis.
The full RTS 28 disclosure is available here.