The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID). FCA has converted the near-final rules from the first two policy statements of the Investment Firms Prudential Regime into final rules. FCA has also published a summary of the minor changes made since it published the near-final versions of the instruments in the second policy statement in July 2021. FCA expects to publish a third policy statement by the end of 2021. The Investment Firms Prudential Regime shall come into force on January 01, 2022.
The published instruments include the Investment Firms Prudential Regime Instrument 2021 and the Investment Firms Prudential Regime (Consequential Amendments to Other Prudential Sourcebooks) Instrument 2021. In addition, FCA has published an updated version of general guidance on the application of ex-post risk adjustment to variable remuneration, which brings FCA investment firms into the scope of the guidance. The main purpose of this guidance is to set out the FCA expectations of the way in which firms comply with the requirements on ex-post risk adjustment. The guidance further details the FCA expectations on malus and clawback, including on how they should be invoked in an effective, timely, consistent, and transparent way. FCA also published a Remuneration Policy Statement template, which the FCA investment firms can use to document their remuneration policies and practices, along with a template, which FCA investment firms can use to record their material risk-takers. The Investment Firms Prudential Regime will apply to the MiFID investment firms authorized and regulated by FCA, the Collective Portfolio Management Investment Firms (CPMIs), and the regulated and unregulated holding companies of groups that contain either of the above. The Regime will not apply to PRA-designated investment firms and these firms will remain subject to prudential supervision by PRA.
- Press Release
- Investment Firms Prudential Regime Instrument 2021 (PDF)
- IFPR (Consequential Amendments to Other Prudential Sourcebooks) Instrument 2021 (PDF)
- Summary of Updates (PDF)
- Guidance on Application of Ex-Post Risk Adjustment (PDF)
- Remuneration Policy Statement Template (DOCX)
- Template to Record Material Risk-Takers (XLSX)
- Overview of Investment Firms Prudential Regime
Effective Date: January 01, 2022
Keywords: Europe, UK, Securities, IFPR, Investment Firms, Remuneration, Reporting, FCA
Previous ArticleESAs Propose New Rules for Taxonomy-Related Product Disclosures
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.