Are you ready for the FCA’s brand-new Investment Firm Prudential Regime (IFPR)

Time is ticking by – Are you ready for the FCA’s brand-new Investment Firm Prudential Regime (IFPR). As of January 1, 2022, all UK MiFID investment firms will have to abide by the new IFPR. 

According to the FCA, the IFPR’s overall objective is “to streamline and simplify the prudential requirements for MiFID investment firms that we prudentially regulate in the UK (FCA investment firms).”

More specifically the FCA is looking to shift the industry’s “prudential requirements and expectations away from the risks firms face” and focus more closely on how to better “manage the potential harm firms can pose to consumers and markets.”

The IFPR, says the FCA, will establish “a single prudential regime for all FCA investment firms, simplifying the current approach for globally active systemically important banks” and reducing “barriers to entry and allowing for better competition between investment firms.”

With less than two months to go before the IFPR rule kicks in, UK investment firms have a lot to do to prepare for this new regulatory obligation.

If you are looking for additional prudential risk SME support, please reach out to Katherine Lord, Head of Danos Consulting. We can ensure you are better than ready for January 2022.