The IFPR introduces a single prudential regime for all MiFID investment firms regulated by the FCA. IFPR will simplify firms’ prudential obligations and will establish a ‘risk-based approach’ that focuses on capturing any risks arising from the firms’ activities that could pose threats to their clients and the markets in which they operate.

With the introduction of the new regime fast approaching, firms need to begin to prepare to meet the IFPR’s requirements; ranging from holding additional liquid assets to enhanced governance arrangements, and from new consolidation requirements to increased regulatory capital. The new prudential regime will also bring significant changes for firms, such as Exempt CAD firms, that were previously out of scope of being categorised in other prudential categories such as BIPRU and IFPRU.

Under the IFPR, those categories will cease to exist, and all firms will be either be categorised as either SNI (small non-interconnected) firms or non-SNI, depending on the regulatory activities they carry out and the financial thresholds they meet.

Complyport can help regulated firms meet the requirements of the IFPR on time by undertaking an IFPR Impact Assessment. Following this review, we will provide a report that will act as a roadmap, outlining what needs to be completed and by when to ensure compliance with the new requirements by the commencement date, 1^st January 2022.

As part of Complyport’s IFPR Impact Assessment, you will receive:

• An assessment of the new initial capital requirement and classification system;
• Analysis of your firm’s new overall capital and liquidity requirements;
• An assessment of whether adequate own funds are in place to cover the new capital requirements; and
• A summary of the governance arrangements needed to comply with the new prudential requirements.
• Review of your firm’s consolidation requirement based on the new prudential regime (i.e. Group Capital Test’)