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.
More for you:
Insights:
