Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 204

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 204
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 The one-year delay aims to ensure that implementation in Europe is aligned to other major jurisdictions. In June 2024, the EU also enacted the amendments to the Capital Requirements Directive, known as CRD6. While the CRR3 and most of the CRD6 requirements apply only to European subsidiaries of HSBC, the CRD6 Article 21c introduces a restriction on cross-border activities provided by non-EU banking entities to EU-based clients, subject to certain exemptions. EU member states have 18 months to transpose the CRD6 rules into national law, so that the effective implementation date is in January 2026. There is an additional one- year transition period for provisions relating to cross-border services and third-country branches. As part of the implementation of CRR3 and CRD6, the EBA has been mandated to draft 140 pieces of secondary legislation and guidance in support of implementation. Global and regional prudential and other regulatory developments The Group is subject to regulation and supervision by a large number of regulatory bodies and other agencies. In addition to regulatory changes being introduced at a country level, changes are often driven by global bodies such as the G20, the FSB and the Basel Committee on Banking Supervision, which are then implemented at country level or in the case of the EU, regionally, subject to modifications and with separate additional measures.

| 140 | HSBC Holdings plcAnnual Report on Form 20-F |

Other information

Of principal importance from a prudential perspective are the changes that relate to Basel 3.1 (as explained in the 'UK regulation and supervision' section). We are also subject to regulatory stress testing in many jurisdictions.These have increased both in frequency and in the granularity of information required by supervisors. They include the programmes of the BoE, the FRB (as explained in the ‘US regulation and supervision’ section), the OCC, the EBA, the ECB, the HKMA and other regulators. For further details, see ‘Stress testing’ on page 146 . On prudential changes, further details can be found in the ‘Regulatory developments’ section on page 7 of the Pillar 3 Disclosures as at 31 December 2024. Recovery and resolution The HSBC Group is subject to recovery and resolution requirements in many of the jurisdictions in which it operates. In Europe, the Bank Recovery and Resolution Directive (BRRD) establishes a framework for the recovery and resolution of EU credit institutions and investment firms. This framework applies to HS