The FCA has published final rules on the Investment Firms Prudential Regime (“IFPR”), which are set to come into force on the 1 January 2022. These prudential requirements affect UK investment firms that undertake MiFID activities. The rules published cover the first two policy statements on the IFPR. A final and third policy statement is expected by the end of 2021.
Among other changes, the regime includes a new methodology for the calculation of capital requirements, more stringent liquid assets requirements, wider scope for prudential consolidation rules, a new remuneration code, and changes to the internal capital adequacy and risk assessment ("ICARA"). Dependent upon the complexity and size of a firm, these changes can be significant.
Novatus can assist you with the application of the IFPR, starting with a preliminary assessment of the impact of the regime on your firm and validation of categorisation as an SNI or non-SNI firm through to implementing all requirements, undertaking the ICARA, and assisting with reporting to the regulator.
You can find the final rules here.