Investment Firm Prudential Regime - an update

Jack Elliot

Jack Elliot

Audit Senior Manager

On 1 January 2022, the Financial Conduct Authority (FCA) will implement a new prudential regime for MiFID investment firms - the Investment Firm Prudential Regime (IFPR).

At Johnston Carmichael, we have been tracking the development of the IFPR throughout the multiple publications by the FCA. The IFPR regime aims for a more proportionate approach to the prudential regulations of investments firms in the UK. There is a significant level of change here, particularly for firms whom haven’t been exposed to this level of prudential scrutiny before including:

  • Changes to Capital requirements
  • New rules on Liquidity & Consolidation
  • New governance requirements in relation to Remuneration
  • New Internal Capital and Assessment Process (ICARA)
  • Changes to reporting and disclosure requirements.
  • Changes to Supervisory Review and Evaluation Process.

Given the complexity of change, we have created a short document covering the key points and the areas you should focus on.

Get in touch

As you work through the requirements, if you identify any challenges or would like a brief conversation to sense check your approach, please do not hesitate to get in touch with myself, a member of our Financial Services or Audit teams, or your usual Johnston Carmichael adviser.