Pillar 3 disclosure

The Capital Requirements Directive (‘CRD’) implemented the Basel capital adequacy framework (‘Basel II’), and applies to certain investment firms, banks and building societies.

The CRD comprises three key components or ‘pillars’ as follows:

  • Pillar 1: Minimum capital requirements
  • Pillar 2: Supervisory review
  • Pillar 3: Market discipline/disclosure requirements

The aim of Pillar 3 is to improve market discipline by requiring firms to publish certain details of their risks, capital and risk management. Institutions are required to certify to the Financial Conduct Authority (FCA) on an annual basis that they have complied with the new disclosure requirements.

Read the Nucleus Financial Platforms 2022 Pillar 3 disclosure document.