RiskSave Compliance


Legal Disclosures

Photo by Rob Bye on Unsplash

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.