Key Details

Duration: 1.5 Hours
Method: Virtual
Price: 150 GBP per person
24 Jun 2021
Delivery Times:
  • 24 Jun 2021 (09:30 - 11:00)

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.

This course provides a high-level overview of the IFPR framework, how it will apply to different types of investment businesses and looks at what firms need to be doing now to prepare.

The genesis of the IFPR:

  • Reasons for it
  • Overall approach
  • What it will replace and when

Scope of the IFPR: Risk-Based Criteria

  • SNI and non SNI criteria (metrics)
  • The new K factors
  • Solo vs. consolidated & potential waivers
  • Scope for SNI and Non SNI firms

Governance: A top down view of the IFPR

  • Governance structure - committees
  • Alignment with SM&CR
  • Impact on remuneration policy and disclosures
  • Likely capital requirements

New Capital Requirements

  • Overview of the new capital building blocks
  • Simplified definition of own funds (capital resources)
  • Comparing FCA minimum & internal assessment
  • Key transitional rules

Risk Management and the new ICARA

  • The Overall Financial Adequacy Rule (OFAR)
  • ICARA process and documentation
  • Risk management expectations
  • The new liquidity risk management approach

Interactions with the FCA

  • Nature of the reset
  • Communications from firms
  • Communications from the FCA

Next steps