Directive 2006/49 - Capital adequacy of investment firms and credit institutions (recast) - Main contents
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Directive 2006/49/EC of the European Parliament and of the Council of 14 June 2006 on the capital adequacy of investment firms and credit institutions (recast)| Legal instrument | Directive |
|---|---|
| Number legal act | Directive 2006/49 |
| Original proposal | COM(2004)486  |
| CELEX number i | 32006L0049 |
| Document | 14-06-2006 |
|---|---|
| Publication in Official Journal | 30-06-2006; OJ L 239M , 10.9.2010,Special edition in Bulgarian: Chapter 06 Volume 009,OJ L 177, 30.6.2006,Special edition in Romanian: Chapter 06 Volume 009,Special edition in Croatian: Chapter 06 Volume 008 |
| Effect | 20-07-2006; Entry into force Date pub. +20 See Art 53 |
| End of validity | 31-12-2013; Repealed by 32013L0036 |
| Transposition | 31-12-2006; At the latest |
30.6.2006 |
EN |
Official Journal of the European Union |
L 177/201 |
DIRECTIVE 2006/49/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 14 June 2006
on the capital adequacy of investment firms and credit institutions (recast)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 47(2) thereof,
Having regard to the proposal from the Commission,
Having regard to the Opinion of the European Economic and Social Committee (1),
Having regard to the Opinion of the European Central Bank (2),
After consulting the Committee of the Regions,
Acting in accordance with the procedure laid down in Article 251 of the Treaty (3),
Whereas:
(1) |
Council Directive 93/6/EEC of 15 March 1993 on the capital adequacy of investment firms and credit institutions (4) has been significantly amended on several occasions. Now that new amendments are being made to the said Directive, it is desirable, in order to clarify matters, that it should be recast. |
(2) |
One of the objectives of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments (5) is to allow investment firms authorised by the competent authorities of their home Member State and supervised by the same authorities to establish branches and provide services freely in other Member States. That Directive accordingly provides for the coordination of the rules governing the authorisation and pursuit of the business of investment firms. |
(3) |
Directive 2004/39/EC does not, however, establish common standards for the own funds of investment firms nor indeed does it establish the amounts of the initial capital of such firms or a common framework for monitoring the risks incurred by them. |
(4) |
It is appropriate to effect only the essential harmonisation that is necessary and sufficient to secure the mutual recognition of authorisation and of prudential supervision systems; in order to achieve mutual recognition within the framework of the internal financial market, measures should be laid down to coordinate the definition of the own funds of investment firms, the establishment of the amounts of their initial capital and the establishment of a common framework for monitoring the risks incurred by investment firms. |
(5) |
Since the objectives of this Directive, namely the establishment of the capital adequacy requirements applying to investment firms and credit institutions, the rules for their calculation and the rules for their prudential supervision, cannot be sufficiently achieved by the Member States and can therefore, by reason of the scale and the effects of the proposed action, be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve its objectives. |
(6) |
It is appropriate to establish different amounts of initial capital depending on the range of activities that investment firms are authorised to undertake. |
(7) |
Existing investment firms should be permitted, under certain conditions, to continue their business even if they do not comply with the minimum amount of initial capital fixed for new investment firms. |
(8) |
Member States should be able to establish rules stricter than those provided for in this Directive. |
(9) |
The smooth operation of the internal market requires not only legal rules but also close and regular cooperation and significantly enhanced convergence of regulatory and supervisory practices between the competent... |
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