Key Details

Duration: 2.5 Hours
Delivery: Inhouse

Overview

The overall objective of the Investment Firm Prudential Regime (IFPR) is to give most investment firms a new prudential framework that focuses on the specific risks attached to their business models. All firms that conduct one or more MiFID listed investment activities are in scope. Only the largest investment firms...

The overall objective of the Investment Firm Prudential Regime (IFPR) is to give most investment firms a new prudential framework that focuses on the specific risks attached to their business models. All firms that conduct one or more MiFID listed investment activities are in scope. Only the largest investment firms will continue to be subject to banking prudential regulation.

The IFPR applies in the UK from 1st January 2022 and in the EU from 26th June 2021.

This course explains the new IFPR framework, how it will apply to different types of investment businesses and enables firms to develop a roadmap for implementation.

Who is this for?

This course is designed for Finance and Risk staff and others in UK based investment firms.

The objectives of the new prudential regime

  • Reasons for it
  • Overall approach and timetable
  • Future status of waivers & modifications
  • What is relevant to you and your firm

IFPR Classification and Scope

  • SNI and non SNI criteria (metrics)
  • Solo vs. consolidated
  • Conditions for waiver from consolidation

Pillar 1 and the New K Factor Requirements

  • Review of each component of capital requirements and how they will be calculated, focused on data and/or examples that are relevant to your firm

Data Collection and Reporting Requirements

  • Review of the process needed to collect, store and analyse the information required for regulatory reporting
  • At the end of this session, you will be able to identify further work needed to implement any required changes to data collection and processes

Changes in the approach to Pillar 2: ICAAP to ICARA

  • What the changes look like
  • How they tie into regulatory areas of focus e.g., operational resilience, outsourcing
  • What the practical impacts are on current governance and risk management

Revised FCA approach to liquidity risk management

Wind down and resolution planning: future regulatory expectations

Bringing the new Pillar 1, Pillar 2 and the FCA review process together

High level review of other aspects of IFPR

After attending this course, you will be able to:

  • Determine your firm’s IFPR classification and the relevant rules
  • Develop an IFPR implementation plan that enables your firm to:
    • Prepare for the new monitoring and regulatory reporting requirements
    • Reposition risk oversight and risk management to meet IFPR requirements
    • Transition to the new ICARA document
    • Develop a framework for assessing your firm’s future financial adequacy and resilience