On the 5th of December 2019 the new prudential framework for investment firms, which will replace the existing prudential requirements of investment firms currently set out in the Regulation (EU) No. 575/2013 on prudential requirements for credit institutions and investment Firms (the "CRR") and the European Directive 2013/36/EU (the "CRD IV"), was published in the Official Journal of the European Union.

The new prudential framework comprises of:

      i. REGULATION (EU) 2019/2033 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 27 November 2019 on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014 (the “IFR”), and

      ii. DIRECTIVE (EU) 2019/2034 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 27 November 2019 on the prudential supervision of investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, 2014/59/EU and 2014/65/EU (the “IFD”).

The IFR becomes directly applicable in all EU Member States on June 26, 2021.