Investment Firm Prudential Regime – How to prepare
On 1st January 2022, the UK adopted a more proportionate and fit-for-purpose prudential regime for investment firms known as the Investment Firms Prudential Regime (IFPR).
Summary – The Investment Firm Prudential Regime (IFPR) is a new streamlined and simplified regime for the prudential regulation of investment firms in the UK.
In the first of three consultation papers (CP20/24) published on 14 December 2020, the FCA highlights critical areas they believe MiFID investment firms will need to focus on. This introductory paper includes a draft of the new prudential handbook known as MiFIDPRU and covers:
You can view the full paper here – FCA Consultation paper CP20/24
Simultaneously, the FCA published proposed reporting templates and associated guidelines.
The consultation closed on 5 February 2021 and FCA feedback is expected in a policy statement due to be published in late spring 2021.
What happens next?
IFPR is expected to be derived from the EU regime. So with less than a year to prepare, UK investment firms should start reviewing FCA publications as they become available, leveraging the European publications for the areas not covered by the FCA.
We recommend that MiFID investment firms identify the potential impacts of the new prudential regime on their business based on the FCA’s discussion paper and consultation paper and the EU package.
Additional FCA consultation papers are expected to be published and should provide further details on the UK proposed future regime:
Firms will then be able to complete their strategy to achieve compliance ahead of the IFPR application date.
On 24 June, we are running a virtual session on IFPR and the key changes that are to be introduced. This webinar will have a particular focus on the ICARA process.
You can sign up for this free webinar here.
Our regulatory compliance and risk management specialists will draw upon their detailed understanding of prudential changes, regulatory expectations and best practices to provide high-quality services tailored to support your transition to IFPR.
We can help firms:
References
This website uses cookies.
Some of these cookies are necessary, while others help us analyse our traffic, serve advertising and deliver customised experiences for you.
For more information on the cookies we use, please refer to our Privacy Policy.
This website cannot function properly without these cookies.
Analytical cookies help us enhance our website by collecting information on its usage.
We use marketing cookies to increase the relevancy of our advertising campaigns.