The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022. The policy statement PS21/17 provides final rules on disclosures, own funds, technical standards, depositaries, the Handbook revisions to reflect changes to the UK resolution regime (including other consequential changes to Handbook), and the use of new powers introduced under Part 9C of the Financial Services and Markets Act 2000. PS21/17 also sets out response to the feedback received on the consultation paper CP21/26, which included the third set of proposals to introduce the Investment Firm Prudential Regime.
FCA also published the following MIFIDPRU application forms under the Investment Firm Prudential Regime:
- Application under MIFIDPRU 2.3.1R to be exempt from disclosure requirements in MIFIDPRU 8 (Disclosure by investment firms) for small and non‑interconnected firms in consolidated insurance groups
- Application under MIFIDPRU 3.3.2R for permission to include interim or year-end profits as common equity tier 1 (CET1) capital before the firm has taken a formal decision confirming the final profit and loss for the year
- Application under MIFIDPRU 3.6.2R for permission to reduce own funds instruments where neither condition in MIFIDPRU 3.6.3R applies
- Application under MIFIDPRU 4.5.9R for permission to rebase fixed overhead requirement
- Application under MIFIDPRU 4.11.9R for permission to exclude positions taken to hedge against the adverse effect of the exchange rate on the own funds or an item deducted from capital from net open currency positions
- Application for a permission under MIFIDPRU for which there is no dedicated application form
- Application under MIFIDPRU 4.12.4R for permission to use an advanced internal market risk model
- Application under MIFIDPRU 4.12.6R for permission to make a material change or a material extension to the use of an advanced internal market risk model
- Application under MIFIDPRU 4.12.66R for permission to use sensitivity models to calculate interest rate risk on derivative instruments
- Notification on PS21/17
- PS21/17 (PDF)
- MIFIDPRU Application Forms
- Overview of Investment Firms Regime
Keywords: Europe, UK, Securities, Investment Firms, IFPR, Reporting, MiFID, Resolution Regime, MiFIDPRU, Disclosures, Regulatory Capital, FCA Handbook, FCA
Previous ArticleDNB Sets Out Reporting Updates and Policy Actions on Climate Risk
Next ArticleFCA Reviews Data on Mortgage Prisoners
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.