PwC's Managing upstream risk: Regulatory reform review - An asian perspective October 2013 | Page 9

• Article 105(14) CRR – RTS on prudent
valuation: 1 June 2014

2.2 Capital Requirements

Update

On 30 September 2013 the EBA published
its final draft RTS on close correspondence
between the fair value of an institution’s
covered bonds and the fair value of its assets.
These RTS will be part of the Single Rulebook
aimed at enhancing regulatory harmonisation
in the EU. The proposed final draft RTS relate
to prudential filters applied to own funds. In
particular, they specify the criteria for defining
the close correspondence between the fair
value of the covered bonds and the fair value
of the assets for the purpose of calculating
capital requirements. The final standards have
been sent to the EC for their adoption as EU
Regulations that will be directly applicable
throughout the EU.
The EBA also published on 3 October an
updated list of FAQs on the Prudent Valuation
Quantitative Impact Study, and on 7 October
2013 the revised deadlines for the delivery of
EBA technical standards. Having considered
the grounds put forward by the EBA, the EC
responded with an agreement to the revised
deadlines for the submission of the following
regulatory products:

• Article 28(5) CRR – RTS on multiple
distribution for own funds: 1 April 2014
• Article 36(2) CRR – RTS on specific
deductions from own funds: 1 January 2014
• Article 73(7) CRR – RTS on broad market
indices for own funds: 1 January 2014
• Article 84(4) CRR – RTS on calculation of
minority interests for own funds: 1 January
2014
• Article 100 CRR – ITS on asset encumbrance
reporting: 1 November 2013

The FCA on 14 October 2013 published a
consultation on the proportionality guidance
on remuneration under CRD IV. Under CRD IV,
bonuses and other variable remuneration must
be capped at 100 per cent of fixed salary or 200
per cent of fixed salary if they are approved by
66 per cent of shareholders owning half the
shares represented, or otherwise approved by a
majority of 75 per cent of the votes represented
(the “hard limits”). However, in its consultation
paper the FCA says that an IFPRU investment
firms can disapply the hard limits where it
can be justified on the basis of the firm’s size,

Banking | Regulatory Reform Review

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