Q&A: The New Prudential Regime - What Does This Mean for You?

May 15, 2019 by Michael Chambers

The Investment Firm Regulation (IFR), a new prudential framework developed by the European Commission (EC), will soon apply to all MiFID investment firms.

The vast majority of investment firms will need to adapt to a new set of capital, liquidity, and reporting requirements. Whether or not you believe these rules are simpler and more proportionate to investment firms, you need to be prepared.

It’s important that compliance teams take some time to consider the potential impact of this new prudential capital regime. While the required changes to capital levels could be modest for some firms, others could potentially see a significant swing in their required capital figure – and firms coming into scope of an ICAAP requirement will need to consider how they operationalise this - careful analysis and planning is a must to avoid being caught out.

Download our Q&A with Michael Chambers, ACA’s Head of Prudential, to learn more about the rules and their impact on a firm’s capital, liquidity, remuneration and disclosures. Topics include:

  • The Brexit effect
  • Impact on ICAAP and public disclosures
  • How regulatory reporting obligations will change