Title

Capital Requirements Directive IV / Capital Requirements Regulation Professional (CRDIV/CRR/Pro)

Distance Learning and Online Certification Program

For secure payment we work with PayPal, the faster and safer way to make online payments. With PayPal we minimize the cost of administration and compliance with many national and international laws, regulations and privacy rules and we can keep the cost of the program so low.

Only PayPal receives your credit card number and your financial information. We only receive your full name, your email and your mail address. According to the PayPal rules, you have the option to ask for a full refund up to 60 days after the payment. If you do not want the program for any reason, all you have to do is send us an email and we will refund the payment, no questions asked. You can try our programs risk-free.

When you click "Buy Now" below, you will be redirected to the PayPal web site. Your payment will be received by our strategic partner and service provider, Cyber Risk GmbH (Rebackerstrasse 7, 8810 Horgen, Switzerland, Handelsregister des Kantons Zürich, Firmennummer: CHE-244.099.341). Cyber Risk GmbH will also send certificates to all members that live outside the United States. Members living in the States well receive their certificates from out office in Washington DC.

The all-inclusive cost is $297.

What is included in the price:

A. The official presentations we use in our instructor-led classes (1,792 main slides, 998 additional slides )

You can find the course synopsis below.

We have developed 241 additional slides that cover the European Stability Mechanism (ESM), the Treaty Establishing the European Stability Mechanism (ESM), the Single Supervisory Mechanism (SSM) and the Banking Union.

We have also developed 757 additional slides that cover the European Market Infrastructure Regulation (EMIR, Regulation No 648/2012) that affects the implementation of the Basel III / CRD IV, Solvency II and the Dodd Frank Act.

EMIR is based on Basel II / CRD III and Basel III / CRD IV.

These additional presentations are important in order to understand the CRD IV package, but there are not part of the exam.

B. Up to 3 Online Exams

There is only one exam you need to pass, in order to become a Capital Requirements Directive IV / Capital Requirements Regulation Professional (CRDIV/CRR/Pro).

If you fail, you must study again the official presentations, but you do not need to spend money to try again. Up to 3 exams are included in the price.

To learn more you may visit:
www.basel-iii-association.com/Questions_About_The_Certification_And_The_Exams_CRDIV.pdf

www.basel-iii-association.com/Certification_Steps_CRDIV_CRR_Pro.pdf

C. Personalized Certificate printed in full colour

Processing, printing and posting to your office or home.


Course Title

Capital Requirements Directive IV / Capital Requirements Regulation Professional (CRDIV/CRR/Pro)

The European Commission cannot simply copy/paste Basel III into its legislative proposal. There are two reasons for that:

First, Basel III is not a law. It is the latest configuration of an evolving set of internationally agreed standards developed by supervisors and central banks.

That has to go through a process of democratic control as it is transposed into EU (and national) law. It needs to fit with existing EU (and national) laws or arrangements. As EU law takes precedence over national law, the Commission's proposal launches that process.

Furthermore, while the Basel capital adequacy agreements apply to internationally active banks, in the EU it has always applied to all banks (more than 8,300) as well as investment firms.

This wide scope is necessary in the EU where banks authorised in one Member State can provide their services across the EU's single market and as such are more than likely to engage in cross-border business.

Also, applying the internationally agreed rules only to a subset of European banks would create competitive distortions and potential for regulatory arbitrage.

The Commission has had to take these particular circumstances into account when transposing Basel III into EU law.

The CRD IV Package is divided into two legislative instruments:

1. A directive - the Capital Requirements Directive (CRD), governing the access to deposit-taking activities.

2. A regulation - the Capital Requirements Regulation (CRR), establishing the prudential requirements institutions need to respect.

While Member States will have to transpose the directive into national law, the regulation is directly applicable, which means that it creates law that takes immediate effect in all Member States in the same way as a national instrument, without any further action on the part of the national authorities.

This removes the major sources of national divergences (different interpretations, gold-plating).

It also makes the regulatory process faster and makes it easier to react to changed market conditions.

It increases transparency, as one rule as written in the regulation will apply across the single market.

Before the CRD IV Package, European banking legislation was based on a Directive which leaved room for significant divergences in national rules.

This has created a regulatory patchwork, leading to legal uncertainty, enabling institutions to exploit regulatory loopholes, distorting competition, and making it burdensome for firms to operate across the Single Market.

In addition to Basel III implementation, the CRD/CRR introduces a number of important changes to the banking regulatory framework.

In the Directive:

  •  -  Better risk management
  •  -  Enhanced corporate governance
  •  -  All supervisors can apply sanctions if EU rules are breached
  •  -  Enhanced supervision
  •  -  Less reliance by credit institutions on external credit ratings

In the Regulation:

A “single rule book” (for the first time, a single set of harmonised prudential rules which banks throughout the EU must respect. This will ensure uniform application of Basel III in all Member States, it will close regulatory loopholes and will contribute to a more effective functioning of the Internal Market).

Objectives, Target Audience:

This course is intended for decision makers, managers, professionals and consultants that:

A. Work in Banks and Investment Firms of EEA countries.

B. Work in Groups - Financial Conglomerates (FC), Financial Holding Companies (FHC), Mixed Financial Holding Companies (MFHC), Banking Holding Companies (IHC), Systemically Important Financial Institutions (SIFIs) - providing services in the EEA.

C. Want to understand the challenges and the opportunities after the CRD IV Package (CRD/CRR).

Course Synopsis:

Introduction

  • The European Union’s Legislative Process
  • Directives and Regulations
  • From the Financial Services Action Plan (FSAP) to the CRD 4 Package
  • CRD 1, 2 and 3 – An overview
  • Extraterritorial Application of European Law and Equivalence
  • The Lamfalussy Process
  • The Treaty of Lisbon and the changes in the delegation of implementing powers to the European Commission
  • Delegated and Implementing Acts

From Basel III to the CRD IV Package

  • The Basel III papers
  • Main differences between the Basel III and the CRD IV Package
  • Different Basel III implementations around the world: From the USA to the European countries, to the G-20 members, to the Offshore Financial Centers.
  • New powers for the European Banking Authority (EBA)

The Capital Requirements Directive (CRD)

  • Subject matter, scope and definitions
  • Competent authorities
  • Cooperation within the European System of Financial Supervision
  • Requirements for access to the activity of credit institutions
  • Authorisation
  • Refusal of authorisation
  • Withdrawal of authorisation
  • Provisions concerning the freedom of establishment and the freedom to provide services
  • Notification requirement and interaction between competent authorities
  • Powers of the competent authorities of the host Member State
  • Relations with third countries
  • Cooperation with supervisory authorities of third countries regarding supervision on a consolidated basis
  • Prudential supervision
  • Significant branches
  • Professional secrecy
  • Duty of persons responsible for the legal control of annual and consolidated accounts
  • Supervisory powers and powers to impose penalties
  • Review Processes
  • Internal Capital
  • Internal governance and recovery and resolution plans
  • Treatment of risks
  • Internal Approaches for calculating own funds requirements
  • Credit and counterparty risk
  • Residual risk
  • Concentration risk
  • Securitisation risk
  • Market risk
  • Interest risk arising from non-trading book activities
  • Operational risk
  • Liquidity risk
  • Risk of excessive leverage
  • Governance arrangements
  • Management body
  • Remuneration policies
  • Institutions that benefit from government intervention
  • Variable elements of remuneration
  • Remuneration Committee
  • Maintenance of a website on corporate governance and remuneration
  • Supervisory review and evaluation
  • Supervisory stress testing
  • Ongoing review of the permission to use internal approaches
  • Supervisory measures
  • Internal Capital Adequacy Assessment Process (ICAAP)
  • Institutions' arrangements, processes and mechanisms
  • Review and evaluation and supervisory measures
  • Supervision on a consolidated basis
  • Determination of the consolidating supervisor
  • Coordination of supervisory activities by the consolidating supervisor
  • Joint decisions on institution-specific prudential requirements
  • Information requirements in emergency situations
  • Coordination and cooperation arrangements
  • Colleges of supervisors
  • Cooperation obligations
  • Inclusion of holding companies in consolidated supervision
  • Supervision of mixed financial holding companies
  • Qualification of directors
  • Requests for information and inspections
  • Assessment of equivalence of third countries' consolidated supervision
  • Capital Buffers
  • Requirement to maintain a capital conservation buffer
  • Requirement to maintain an institution-specific countercyclical capital buffer
  • Global and other systemically important institutions
  • Reporting
  • Requirement to maintain a systemic risk buffer
  • Recognition of a systemic risk buffer rate
  • ESRB guidance on setting countercyclical buffer rates
  • Setting countercyclical buffer rates
  • Recognition of countercyclical buffer rates in excess of 2,5 %
  • ESRB recommendation on third country countercyclical buffer rates
  • Decision by designated authorities on third country countercyclical buffer rates
  • Calculation of institution-specific countercyclical capital buffer rates
  • Restrictions on distributions
  • Capital Conservation Plan
  • Disclosure by competent authorities
  • Delegated and implementing acts
  • Transitional and final provisions
  • Transposition

The Capital Requirements Regulation (CRR)

  • Subject matter, scope and definitions
  • Application of stricter requirements by institutions
  • Prudential consolidation
  • Financial holding company or mixed financial holding company with both a subsidiary credit institution and a subsidiary investment firm
  • Application of disclosure requirements on a consolidated basis
  • Methods for prudential consolidation
  • Entities excluded from the scope of prudential consolidation
  • Undertakings in third countries
  • Valuation of assets and off-balance sheet items
  • Elements of own funds
  • Tier 1 capital
  • Common Equity Tier 1 capital
  • Capital instruments of mutuals, cooperative societies, savings institutions or similar institutions in Common Equity Tier 1 items
  • Common Equity Tier 1 instruments
  • Consequences of the conditions for Common Equity Tier 1 instruments ceasing to be met
  • Capital instruments subscribed by public authorities in emergency situations
  • Securitised assets
  • Cash flow hedges and changes in the value of own liabilities
  • Unrealised gains and losses measured at fair value
  • Deductions from Common Equity Tier 1 items
  • Deduction of intangible assets
  • Deduction of deferred tax assets that rely on future profitability
  • Tax overpayments, tax loss carry backs and deferred tax assets that do not rely on future profitability
  • Deduction of defined benefit pension fund assets
  • Deduction of holdings of own Common Equity Tier 1 instruments
  • Significant investment in a financial sector entity
  • Deduction of holdings of Common Equity Tier 1 instruments of financial sector entities and where an institution has a reciprocal cross holding designed artificially to inflate own funds
  • Deduction of holdings of Common Equity Tier 1 instruments of financial sector entities
  • Deduction of holdings of Common Equity Tier 1 instruments where an institution does not have a significant investment in a financial sector entity
  • Deduction of holdings of Common Equity Tier 1 instruments where an institution has a significant investment in a financial sector entity
  • Threshold exemptions from deduction from Common Equity Tier 1 items
  • Requirement for deduction where consolidation, supplementary supervision or institutional protection schemes are applied
  • Additional Tier 1 items
  • Additional Tier 1 instruments
  • Restrictions on the cancellation of distributions on Additional Tier 1 instruments and features that could hinder the recapitalisation of the institution
  • Write down or conversion of Additional Tier 1 instruments
  • Deductions from Additional Tier 1 items
  • Deductions of holdings of own Additional Tier 1 instruments
  • Deduction of holdings of Additional Tier 1 instruments of financial sector entities and where an institution has a reciprocal cross holding designed artificially to inflate own funds
  • Deduction of holdings of Additional Tier 1 instruments of financial sector entities
  • Deduction of holdings of Additional Tier 1 instruments where an institution does not have a significant investment in a financial sector entity
  • Tier 2 capital
  • Consequences of the conditions for Tier 2 instruments ceasing to be met
  • Deductions from Tier 2 items
  • Deductions of holdings of own Tier 2 instruments
  • Deduction of holdings of Tier 2 instruments of financial sector entities and where an institution has a reciprocal cross holding designed artificially to inflate own funds
  • Deduction of holdings of Tier 2 instruments of financial sector entities
  • Deduction of Tier 2 instruments where an institution does not have a significant investment in a relevant entity
  • Own funds
  • Continuing review of quality of own funds
  • Minority interest and Additional Tier 1 and Tier 2 instruments issued by subsidiaries
  • Qualifying holdings outside the financial sector
  • Required level of own funds
  • Calculation and reporting requirements
  • Capital requirements for credit risk
  • Standardised Approach
  • Calculation of risk weighted exposure amounts
  • Exposures to central governments or central banks
  • Exposures to regional governments or local authorities
  • Exposures to public sector entities
  • Exposures to corporates
  • Use of credit assessments by ECAIs
  • Mapping of ECAI's credit assessments
  • Internal Ratings Based Approach
  • Permission to use the IRB Approach
  • Conditions to revert to the use of less sophisticated approaches
  • Credit risk mitigation
  • Securitisation
  • Traditional securitisation
  • Synthetic securitisation
  • Counterparty credit risk
  • Permission to use the Internal Model Method
  • Integrity of the modelling process
  • Validation requirements
  • Own funds requirements for operational risk
  • Reverting to the use of less sophisticated approaches
  • Basic indicator approach
  • Standardised approach
  • Principles for business line mapping
  • Alternative standardised spproach
  • Advanced measurement approaches
  • Own funds requirements for credit valuation adjustment risk
  • Liquidity coverage requirement
  • Stable Funding
  • Compliance with liquidity requirements
  • Liquidity reporting
  • Reporting on stable funding
  • Items requiring stable funding
  • Calculation of the leverage ratio
  • Reporting requirement
  • Disclosure requirements
  • Non-material, proprietary or confidential information
  • Frequency of disclosure
  • Technical criteria on transparency and disclosure
  • Delegated acts
  • Technical adjustments and corrections
  • Macroprudential or systemic risk identified at the level of a Member State
  • Transitional provisions

Closing

  • Supervisory authorities around the world: What they have done, what they will do, why they choose to do so.
  • Regulatory differences, regulatory arbitrage, challenges and opportunities.
  • They all implement Basel iii - Supervisory differences: The range of practices around the world.

The Impact of Basel III / CRDIV Package

  • Investment Banking, Corporate Banking, Retail Banking
  • Investment banks are primarily affected, particularly in trading and securitization businesses
  • The new capital rules have a substantial impact on profitability
  • Banks with insurance subsidiaries
  • Minority investments after Basel III / CRD IV
  • Basel III and the competition among countries
  • Examples and Case Studies
  • Closing remarks

STEPS - To become a Capital Requirements Directive IV / Capital Requirements Regulation Professional (CRDIV/CRR/Pro)

Step 1. For secure payment we work with PayPal, the faster and safer way to make online payments. With PayPal we minimize the cost of administration and compliance with many national and international laws, regulations and privacy rules and we can keep the cost of the program so low.

Only PayPal receives your credit card number and your financial information. We only receive your full name, your email and your mail address. According to the PayPal rules, you have the option to ask for a full refund up to 60 days after the payment. If you do not want the program for any reason, all you have to do is send us an email and we will refund the payment, no questions asked. You can try our programs risk-free.

When you click "Buy Now" below, you will be redirected to the PayPal web site. Your payment will be received by our strategic partner and service provider, Cyber Risk GmbH (Rebackerstrasse 7, 8810 Horgen, Switzerland, Handelsregister des Kantons Zürich, Firmennummer: CHE-244.099.341). Cyber Risk GmbH will also send certificates to all members that live outside the United States. Members living in the States well receive their certificates from out office in Washington DC.

 

Step 2. We will send you the official presentations via email in less than 48 hours.

Please study the presentations carefully.

Step 3. When you feel ready to sit for the exam, please send an email to:

Lyn Spooner
Email: lyn@basel-iii-association.com

We will create your account and we will send your username and password for the online exam.

You can sit for the exam any time from your office or home. Your account never expires.

To learn more you may visit:
www.basel-iii-association.com/Questions_About_The_Certification_And_The_Exams_CRDIV.pdf

www.basel-iii-association.com/Certification_Steps_CRDIV_CRR_Pro.pdf

Step 4. If you pass, congratulations. You will learn it immediately after the exam.

You are a Capital Requirements Directive IV / Capital Requirements Regulation Professional (CRDIV/CRR/Pro), and you are entitled to write about your certificate in your CV, resume, websites etc. using the names and the logos of the association.

Step 5. We will send your signed and stamped certificate via standard mail. You will receive it up to 3 months after the day you passed the exam.

Step 6. If you do not pass the exam:

Study the presentations.

Try to understand the details. You will have the opportunity to try again.

Step 7. You will have (at no extra cost) a second opportunity to sit for the exam.

You can use the same Username, Password and Account information we have sent you.

Step 8. If you do not pass again, you have to study more.

You will have (at no extra cost) a third opportunity to sit for the exam. You can use again your Username, Password and Account information.

Step 9. If you do not pass, you will have (at no extra cost) another opportunity to sit for the exam, but you have to study and learn more. After one year, you can try again (for the 4th time).

To learn more you may visit:

www.basel-iii-association.com/Questions_About_The_Certification_And_The_Exams_CRDIV.pdf

www.basel-iii-association.com/Certification_Steps_CRDIV_CRR_Pro.pdf

For any questions please contact Lyn Spooner
Email: lyn@basel-iii-association.com


Frequently Asked Questions

1. How comprehensive are the slides? Are they just bullet points?

Answer: The slides are not just bullet points, you can read them, understand and learn. These are the official slides we use in our instructor led classes

2. Do I need to buy books to pass the exam?

Answer: No. If you study the slides carefully, you can pass the exam. If you fail the first time, you must study more. Print the slides and use Post-it to attach notes like "COSO" "Operational Risk" etc. to know where to find the answer of the material you do not remember.

3. Is it an open book exam? Why?

Answer: Yes, it is an open book exam. Basel III / CRD is not something you have to memorize, it is something you have to understand.

4. Do I have to sit for the exam soon after receiving the presentations?

Answer: You can sit for the exam from your office or home any time in the future. We will create an online account that never expires.

5. Do I have to spend more money in the future to remain certified? Does the certification lose its value after some time?

Answer: No. Your certificate never expires. It will be valid without the need to spend money or to sit for another exam in the future.

6. Ok, the certificate never expires, but things change.

Answer: If a university degree never expires, why should our certificates expire? Yes, things change, and this is the reason you need to become a member of the Association. You will receive a monthly newsletter with updates, alerts and opportunities to stay current. There is no cost for that.

7. How many hours do I need to study in order to pass the exam?

Answer: It depends on your knowledge and experience. You must study the presentations carefully. You must go through the slides another time, and ensure you have learned the details. It usually takes 28-36 hours.

8. I want to learn more about the online exam.

Answer: You will be given 90 minutes to complete a 35 question multiple-choice exam. You must score 70% or higher. We do not send sample questions. If you study the presentations carefully, you can score 100%.

9. Why should I be certified?

Answer: After the failures of so many organizations during the current market crisis, and the risk that shareholders may sue senior management and the board of directors for gross negligence, firms and organizations hire only professionals that provide evidence that they are qualified and are "fit and proper", to use the Basel iii / CRD language.

Organizations need assurance that employees have the knowledge and skills to accept more responsibility. Supervisors and external auditors ask for independent evidence that the process owners are qualified, and that the controls can operate as designed because the persons responsible for these controls have the necessary knowledge.

The marketplace is clearly demanding qualified professionals in risk and compliance management. Certified professionals enjoy industry recognition, have more and better job opportunities, secure the best jobs, and make more money. They are more satisfied as they enjoy much more benefits for spending their time for somebody else.

It is important to be certified and to belong to professional associations. You prove that you are somebody who cares, learns, and belongs to a global community of professionals.

10. Why should I choose your certification program?

Answer: It is always wise to investigate first. You may search for other Basel iii / CRD IV certificates in the web.

Our distance learning and online certification program is a very honest proposal. At a cost that is unheard of:

1. You receive the training material (the official presentations of the instructor-led class).

2. You can pass the exam. There are 3 exams that are included in the price, so you do not have to pay again if you fail.

3. You do not need to spend money in the future to remain certified. Your certificate never expires.

4. You become member to the Association and receive monthly updates, news and alerts.

11. I have more questions.

Answer: To learn more you may visit:
www.basel-iii-association.com/Questions_About_The_Certification_And_The_Exams_CRDIV.pdf

www.basel-iii-association.com/Certification_Steps_CRDIV_CRR_Pro.pdf

12. I have questions and I did not find the answers.

Answer: You may send an email to Lyn Spooner. You will have a clear written answer to your questions.

Lyn Spooner
Email: lyn@basel-iii-association.com


The Basel iii Compliance Professionals Association (BiiiCPA) is the largest association of Basel iii Professionals in the world. It is a business unit of the Basel ii Compliance Professionals Association (BCPA), which is also the largest association of Basel ii Professionals in the world. Both associations are owned by Compliance LLC, incorporated in Delaware, USA. Compliance LLC is a risk and compliance management training and executive coaching company, providing services in more than 36 countries.

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