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

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Finalizes Guidance to Assess Breaches of Large Exposure Limits

    The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.

    September 15, 2021 WebPage Regulatory News
    News

    PRA Finalizes Changes to Consolidated Prudential Rules Under CRD5/CRR2

    The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Revises Guidelines on Stress Tests of Deposit Guarantee Schemes

    The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News
    News

    HKMA Endorses Industry Guidance to Support LIBOR Transition

    The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).

    September 14, 2021 WebPage Regulatory News
    News

    OCC Issues Booklet on Supervision of Problem Banks

    The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.

    September 13, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7481