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1- Minute Read

The second IFPR consultation paper (CP21/7) is out

The FCA’s second Consultation Paper (CP21/7) on the IFPR was published yesterday in the run-up to the implementation of a new prudential regime for MiFID investment firms from January 2022.

This CP includes additional proposals and further details on: 

  • own funds requirements, including the methods for calculating K-factors;
  • types of assets that can be utilised to meet the liquidity requirement;
  • the method for calculating, through the ICARA process, the own funds and liquid assets to be held on top of the required capital;
  • governance and senior management rules;
  • remuneration rules; and
  • reduced reporting requirements.

The FCA intends to incorporate most of the prudential requirements for investment firms in a newly formed ‘MIFIDPRU’ prudential sourcebook. A third, and final, Consultation Paper is expected in the next quarter.

Please see our Novatus insights for more information on how we can help you meet the requirements.