8 Other topics and applicable requirements

298. The CRD 2013 and the CRR are not the only pieces of European legislation applicable to investment firms that contain prudential requirements. The Banking Recovery and Resolution Directive1 (BRRD) is also applicable to certain investment firms. This Chapter will discuss the BRRD, but will also discuss the merits of a separation between client activities and own account activities of the investment firm, similar to that found in the Volcker Rule2 in the USA. This Chapter will also discuss the differences in a going-concern or gone-concern approach and the implications this should have for the supervisory (prudential) approach.

299. As the conclusions on the going- vs gone-concern approach and the usability of the Volcker rule will affect the possible benefit of the BRRD regime, this Chapter will start with an analysis of the going- vs gone-concern approaches. Subsequently, the Volcker rule will be discussed and the usability of a similar separation of client-related activity and own-account activities for an investment firm prudential regime. This Chapter will end with an analysis of the BRRD regime for certain investment firms and will set the current BRRD regime against the conclusions of the other sections in this Chapter. The Chapter will end with a discussion on the possible methods for assessing the systemic relevance of investment firms.