Featured Product

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    July 26, 2021

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime. This is FCA's second policy statement on the investment firms regime and it aims to streamline the prudential requirements for solo-regulated investment firms in the UK (FCA investment firms). The new regime represents a major change for FCA investment firms and is expected to take effect in January 2022, subject to the Treasury making the necessary secondary legislation under the Financial Services Act. FCA intends to publish another consultation sometime in the beginning of August, followed by a policy statement summarizing the feedback received and bringing together all the final rules in the fourth quarter of 2021.

    This policy statement follows CP21/7, the feedback period for which ran from April 19, 2021 to May 28, 2021. In this consultation, FCA had sought views on the remaining aspects on own funds requirements (such as the Fixed Overheads Requirement), the basic liquid assets requirement, the remuneration requirements, the Internal Capital and Risk Assessment (ICARA) process, and the draft reporting and notification templates. The policy statement addresses the feedback received with respect to the the liquid assets requirement reporting (MIF007), the ICARA process reporting (MIF007), group capital test reporting (MIF006), remuneration reporting (MIF008), and proportionality, among others. FCA received 63 responses to CP21/7, with most respondents supporting the proposals. In some cases, respondents requested clarifications on the application of rules, though, in a small number of cases, they opposed the proposals or suggested changes to the proposed rules.

    In general, FCA has implemented the proposals as consulted on while making amendments to provide more clarity in response to some of the feedback received. As the near-final legal instrument does not differ significantly from the version in CP21/7, FCA considers that the original cost-benefit analysis remains appropriate. Appendix 1 of the policy statement presents the near-final text of the Investment Firms Prudential Regime Instrument 2021. This instrument is expected to come into force on January 01, 2022, with certain exceptions that come into force on December 01, 2021. 

     

    Related Links

    Keywords: Europe, UK, Securities, IFPR, Investment Firms, Regulatory Capital, Reporting, Liquidity Risk, Proportionality, ICARA, K-Factor Regime, FCA

    Featured Experts
    Related Articles
    News

    ECB Finds Banks Unprepared for Pillar 3 Climate Risk Disclosures

    The European Central Bank (ECB) published results of the 2022 supervisory assessment of climate-related and environmental risk disclosures among significant institutions (103) and a selected number of less significant institutions (28).

    April 21, 2023 WebPage Regulatory News
    News

    NCUA Assesses Credit Union Exposure to Climate-Related Physical Risks

    The National Credit Union Administration (NCUA) released a Research Note that examines the exposure of credit unions to climate-related physical risks. In a related development

    April 21, 2023 WebPage Regulatory News
    News

    EBA Issues Multiple Regulatory and Reporting Updates for Banks

    The European Banking Authority (EBA) is seeking comments, until July 31, 2023, on the draft Guidelines on the proposed common approach to the resubmission of historical data under the EBA reporting framework.

    April 21, 2023 WebPage Regulatory News
    News

    EC Adopts Regulation on Own Funds, Issues Other Updates

    The European Commission adopted Delegated Regulations on own funds and eligible liabilities, on requirements for the internal methodology under the internal default risk model

    April 20, 2023 WebPage Regulatory News
    News

    CDP Platform to Report Plastic-Related Impact, Issues Other Updates

    The Carbon Disclosure Project (CDP) announced that its global environmental disclosure platform has enabled reporting on plastic-related impact for nearly 7,000 companies worldwide

    April 19, 2023 WebPage Regulatory News
    News

    IASB to Enhance Reporting of Climate Risks, Proposes IFRS 9 Amendments

    The International Accounting Standards Board (IASB) updated its work plan to enhance the reporting of climate-related risks in the financial statements,

    April 19, 2023 WebPage Regulatory News
    News

    BIS Addresses Data Gaps and Macro-Prudential Policy for Climate Risks

    The Financial Stability Institute (FSI) of the Bank for International Settlements (BIS) published a brief paper that examines challenges associated with the use of macro-prudential policies to address climate-related financial risks.

    April 17, 2023 WebPage Regulatory News
    News

    FCA Sets Out Business Plan, Launches TechSprint on Greenwashing

    The Financial Conduct Authority (FCA) published its business plan for 2023-24. The plan sets out details of the work planned for the next 12 months to achieve better outcomes for consumers and markets

    April 17, 2023 WebPage Regulatory News
    News

    UK Committee Sets Out Recommendations for Next Phase of Open Banking

    The Joint Regulatory Oversight Committee (JROC), comprising the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR) as co-chairs and the HM Treasury and the Competition and Markets Authority (CMA) as members

    April 17, 2023 WebPage Regulatory News
    News

    ECB Publishes Multiple Regulatory Updates for Banking Institutions

    The European Central Bank (ECB) published the results of the 2022 climate risk stress test of the Eurosystem balance sheet,

    April 17, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8873