6.1.1 Particulars of the regulatory regime for investment firms

226. The legislative structure for investment firms in the European Union deviates from the structure used for other financial sector entities in the EU. For instance, in the case of managers of investment funds, which are regulated under the AIFMD or UCITS, their respective directives contain the market entry requirements for (managers of) investment funds, but also the specific capital requirements and market conduct requirements. The AIFMD and the UCITS both refer to the CRR and preceding versions of the CRD 2013 only for 1) the definition of capital which is included in Part Two of the CRR, 2) the initial capital requirements if these funds managers also provide investment services and 3) in the fixed overhead requirement of Article 97 of the CRR.1 The regulatory framework for investment firms, however, is based on MiFID II, which contains the market entry and market conduct requirements for investment firms, and which refers2 to the CRD 2013 and the CRR for the prudential (capital) requirements. Investment firms therefore need to comply with two distinct legal frameworks: MiFID II and CRD 2013 and the CRR. As noted, (managers of) investment funds need to comply with the rules set forth in their respective directives without other bodies of European law creating substantive obligations.