Regulatory Alerts2014-06-28
Circular 2/2014 of the CNMV on the exercise of regulatory options regarding solvency for investment firms and their consolidatable groups
The Spanish National Securities Market Commission (CNMV) issued Circular 2/2014 to define national regulatory options under EU Regulation 575/2013 for investment firms and their consolidatable groups. The circular exempts certain firms from new liquidity requirements, mandates the application of a 1,250% risk weight to qualifying holdings in non-financial entities, and prohibits exceptions to minimum initial capital requirements. It also establishes transitional rules, liquidity coefficient standards, and reporting obligations to ensure consistent prudential supervision from January 1, 2014.
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