On 3 April 2014, the statutory instrument implementing the provisions on capital buffers set out in the Capital Requirements Directive was published. The instrument designates the relevant authorities for setting each buffer rate and provides for transitional and final implementation dates. The Bank of England ("BoE") is the designated authority for setting the countercyclical buffer which the Financial Policy Committee ("FPC") will be able to use from 1 May 2014. The Prudential Regulation Authority ("PRA") and the Financial Conduct Authority ("FCA") will be responsible for setting the capital conservation buffer which will apply from 1 January 2016 subject to a transitional period and will apply fully from 1 January 2019. The PRA will also be responsible for setting the G-SII buffer, applicable from 1 January 2016 subject to a transitional period and will apply fully from 1 January 2019, and the O-SII buffer.
The instrument also designates, in accordance with the Capital Requirements Regulation, the BoE as the responsible authority for notifying EU authorities of any proposed macro-prudential measure that the FPC intends to take.
The legislation is available at: http://www.legislation.gov.uk/uksi/2014/894/pdfs/uksi_20140894_en.pdf .
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