FCA IFPR Newsletter – What to Expect

The FCA are intensifying their preparations for the launch of the IFPR regime in January 2022. It is critical that firms take the appropriate steps to be ready for the IFPR; the clock is ticking and there is only a short time left.

To ensure that firms are getting prepared, the FCA issued their first IFPR Newsletter in early November which contains general guidance for investment firms and a timeline of the FCA’s coming approach on the IFPR regime.

Below is a brief overview of the FCA’s IFPR Newsletter:

  • Remuneration

The FCA have published templates for firms to capture their remuneration policies and practices:

  • The Remuneration Policy Statement template is a tool which all FCA investment firms can use to document their remuneration policies and practices, and how compliant they are with the relevant parts of the MIFIDPRU Remuneration Code.
  • A template for non-SNI investment firms to record their material risk takers (MRTs) and the structure of their remuneration.

The templates are not compulsory, firms have the discretion to document their remuneration policies and MRTs as they wish – but the templates provide a guide of what the regulator will expect to see.

The newsletter outlined FCA guidance on how they expect non-SNI firms to comply with the rules on malus and clawback. The FCA emphasises that these rules should be invoked in an “effective, timely, consistent, and transparent way”.

  • MIFIDPRU permissions

The gateway for applications for certain MIFIDPRU permissions is open. Applications should be made through Connect and the FCA encourages firms to apply as early as possible.

Link for further information on the application forms: FCA IFPR application website

 

Coming soon – what to expect?

  • IFPR Set Up Questionnaire

There will be an IFPR questionnaire circulated by the FCA to firms in November 2021; the FCA has requested that firms ensure their contact details are up to date in Connect.

The questionnaire data collected will be used to set up firms’ prudential reports and reporting schedule. It is stressed that completing the questionnaire is mandatory and must be completed by the specified deadline.

  • IFPR webinars

There will be two webinars on the 30th of November, one aimed at SNIs, and one aimed at non-SNIs. For more information and/or to register for the webinars, click here.

  • Reporting

The FCA will publish further information about reporting and including the data reference guide (DRG) later in the autumn.

 

Information about IFPR

For details on IFPR and the changes being introduced, information can be found in an earlier article.

We will be hosting a free webinar on implementing IFPR, including a detailed review of the ICARA preparation process on the 1st of December at 10:00am. Register here or on the image below to attend.

IFPR webinar image

How can Complyport help?

If this article has raised any questions or you think your firm may require assistance meeting the new requirements under the new IFPR, please contact Jonathan Greenstein now, via jonathan.greenstein@complyport.com, and book in a free consultation.

Our teams are ready to support your firm in meeting the new requirements, putting together the ICARA, the calculation of K-Factors and more.

Complyport IFPR services:

Our IFPR Impact Assessment Service

Our IFPR Roadmap Preparation

 

About Complyport

Complyport is the City’s market leading consulting firm supporting the UK financial services industry for over 20 years. We specialise in providing Governance, Risk and Compliance services to support the regulated financial services industry to raise standards and thrive.

Complyport advises and assists firms to become authorised and to comply with the rules and requirements of regulators on an ongoing basis. Our vision is to be there for our clients every step of the way, helping them change, grow, and excel through expertise, insight and innovation, and in so doing to become our clients’ most valued supplier and trusted advisor.

We have successfully assisted over 1000 firms to become authorised with the FCA and EU and are providing regulatory support to over 600 regulated firms on an ongoing basis globally. With presence in the UK and EU, as well as via our Associates Network, Complyport can assist firms across multiple jurisdictions.

Complyport’s multidisciplinary consultants possess deep expertise in their field, having acted in FCA skilled person reviews, as expert witnesses in legal cases and as expert investigators for firms or their legal advisers.

Day to day, we conduct audits and reviews of a firm’s products, processes, policies and procedures to identify scope for business, to determine the impact of regulatory developments and to verify compliance with local regulations. Our clients tell us we live our values; we are driven, agile and collaborative.