Before the application of IFD/IFR, both investment firms and credit institutions (banks) were subject to the same EU prudential rules, being a combination of the provisions set out in Capital Requirements Regulation (CRR/CRR II) and the Capital Requirements Directive IV (CRD IV/CRD V) which are derived from the Basel standards. However, the risks faced and posed by most investment firms are substantially different to the risks faced and posed by credit institutions(banks). Investment firms generally do not have large portfolios of retail and corporate loans and do not take deposits. The likelihood that their failure can have a detrimental impact on overall financial stability is lower than in the case of credit institutions (banks). To address this difference in risk profile, the European Commission has introduced the IFR and the IFD to ensure that such differences are reflected in the EU’s prudential framework. The main changes deriving from IFD/IFR impact prudential requirements, remuneration requirements, internal governance and reporting/disclosure requirements. Investment firms shall disclose the number of directorships held by members of the management body. The disclosure can be assessed through the link below.