The Investment Firm Prudential Regime (IFPR) will be impacting all UK investment firms authorised under MIFID from the 1st of January 2022 with the regime bringing in changes to Classification (SNI or non-SNI), Own Funds and Liquid Resource Requirements and the ICARA Process (the new name for the ICAAP).
Complyport hosted a free webinar, Implementing IFPR – A detailed review of the ICARA preparation process, on the 1st of December at 10:00am, to aid firms in preparing for the new prudential regulation and particularly focused on the ICARA process.
To watch the recording of our webinar, please complete the details below:
What was covered during the IFPR webinar?
During this webinar, we:
- Discussed IFPR and key regulatory changes
- Assessed new Prudential requirements
- Considered how to prepare and implement ICARA, with specific on;
- Minimum Requirements, Thresholds Requirements and Overall Financial Adequacy Rule (OFAR)
- Approach to risk and prudential assessment
- Wind-down planning
- Own funds and Liquidity Requirements (stress testing)
- Consolidation
- Group ICARA
- Key components of the report
- Reporting and notification
How can Complyport assist with implementing IFPR?
Complyport has been working hard to ensure that our clients are adequately prepared for the implementation of the new prudential regime (IFPR) that will come into force on 1 January 2022. We want to ensure that our clients will be able to meet the new IFPR requirements; ranging from holding additional liquid assets, increased regulatory capital, and the new governance, remuneration and reporting requirements before the expected date of implementation. Complyport can provide your firm with an IFPR Impact Assessment, to make certain you have a clear roadmap outlining what needs to be completed to ensure compliance by the 1st of 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’)
Another important change is that the FCA proposes to introduce the Internal Capital Adequacy and Risk Assessment (ICARA) process to replace the current FCA Internal Capital Adequacy Assessment Process (ICAAP) for all investment firms. As part of ICARA, firms will have to conduct business model analysis, stress testing, recovery, and wind-down planning.
Complyport can assist financial services firms with the preparation of their ICARA. This will involve us designing and documenting your firms ICARA process (e.g. wind-down planning, stress testing), the preparation of the ICARA report and the production of a Board of Directors meeting minutes discussing, assessing and approving the results of the ICARA Report.
We can also assist you with the design of your risk management and remuneration policies as well as with the preparation and submission of the new MIFIDPRU/FSA returns to the FCA after IFPR is implemented.
If you are interested in the IFPR Impact Assessment, want assistance in preparing an ICARA, need updated IFPR policies or are looking for support with financial returns, please contact Jan Hagen via jan.hagen@complyport.co.uk.
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.
