The FCA published a discussion paper on a prudential regime for UK investment firms. The discussion paper sets out the technical details and the FCA’s views on the Investment Firm Directive (“IFD”) and the Investment Firm Regulation (“IFR”) which investment firms in EU Member States will need to comply with from 26 June 2021. As the UK has left the EU, it will not implement the IFD/IFR but rather the UK Government intends to legislate to introduce a new prudential regime for UK investment firms.
Christopher Woolard, interim Chief Executive of the FCA, said:
‘We have long advocated for a bespoke prudential regime for investment firms.
‘A new UK regime would represent a significant improvement in the prudential regulation of investment firms. For the first time, it would deliver a regime that has been designed with investment firms in mind.’
The information in the Discussion Paper will be of interest to all solo-regulated investment firms that are currently authorised under MiFID. It will also be of interest to Collective Portfolio Management Investment Firms and those investment firms authorised by the Prudential Regulation Authority.
Investment firms and other interested stakeholders have until 25 September to respond.
