Consultations & legislation
28 February 2006
This consultation document and partial regulatory impact assessment (RIA) deal with the legislative measures the Government will need to make to transpose the Capital Requirements Directive (CRD) into UK law. The consultation document lays out the relevant directive text and provides an interpretation, highlighting key questions and issues. The partial RIA lays out the implementation options for those areas of directive text and considers qualitative, and where possible, quantitative costs and benefits for each option.
The CRD updates European legislation in line with international recommendations by implementing in the EU the new Basel Accord, Basel 2. Basel 2 is intended to reduce the possibility of consumer loss or market disruption as a result of prudential failure by seeking to ensure that the financial resources held by a firm are commensurate with the risks associated with the business profile and the control environment within the firm. The directive applies to all credit institutions and certain investment firms.
Transposition of the Capital Requirements Directive: Consultation and Partial Regulatory Impact Assessment is available below in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website . For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page .
