The IFPR will streamline and simplify our prudential requirements. It will refocus requirements and expectations away from the risks that firms face, to also consider and look to manage the potential harm firms can pose to consumers and markets.
We have converted the near-final rules from the first two policy statements of the Investment Firms Prudential Regime (IFPR) into final rules.
We will publish a third policy statement by the end of 2021.
Remuneration: guidance and templates
We have also published an updated version of our General guidance on the application of ex-post risk adjustment to variable remuneration, which brings FCA investment firms into scope of the guidance.
Also now available are:
About our consultations
The UK IFPR rules aim to streamline and simplify prudential requirements for solo-regulated UK firms, authorised under the UK Markets in Financial Instruments Directive (MiFID) regime.
The first consultation introduced the UK IFPR and focused on categorising investment firms, prudential consolidation and the group capital test, own funds, aspects of own funds requirements, concentration risk and reporting.
The second consultation focused on the remaining aspects of own funds requirements, liquidity, risk management, firms providing clearing services, governance, remuneration, applications and notifications. It also addressed the interaction between the UK IFPR and other existing prudential regimes.
The third consultation focused on disclosure, technical standards, additional aspects of own funds, depositories, our approach to the UK resolution regime, enforcement, applications and notifications and consequential changes to the Handbook.
The IFPR will apply to the following:
- MiFID investment firms authorised and regulated by us
- Collective Portfolio Management Investment Firms (CPMIs)
- regulated and unregulated holding companies of groups that contain either of the above
The IFPR will not apply to PRA designated investment firms. They will remain subject to prudential supervision by the PRA.
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