Investment Firm Prudential Regime (IFPR): Key features and Internal Capital Adequacy and Risk Assessment (ICARA)

24 June 2021. In this virtual session we discussed the key changes introduced by IFPR, in particular the ICARA process.

Investment firms are currently subject to various prudential regimes depending on their size and the type of business they carry out. To streamline regulations, the UK is seeking to implement a more proportionate and fit-for-purpose regime for investment firms known as the Investment Firm Prudential Regime (IFPR).

Investment firms are expected to be compliant with the new requirements by 1 January 2022. In this context, Mazars analysed the key features of the new regime based on the two consultation papers already issued by the FCA in December 2020 and in April 2021.

During the one hour webinar, we focused on the Internal Capital Adequacy and Risk Assessment (ICARA) process, its practical implications for firms and how this continuous risk management process should be performed.

The conversation centred around:

  • What changes in regulatory requirements IFPR brings for investment firms
  • What the ICARA process and the overall financial adequacy rule are
  • What ICARA involves and how firms should run it
  • How ICARA should be handled for investment firms that are part of a group

You can watch the webinar here