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

May 16, 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


How we can help

We have a range of solutions designed to help you meet your Investment Firm Regulation (IFR) obligations. 

These include: 

  • Impact assessment – to help you understand how the new prudential framework impacts your firm. This includes categorisation, capital requirements and resources, liquidity requirement and resources, group rules, regulatory reporting, ICAAP and public disclosure. 
  • Regulatory reporting – we can look after your on-going regulatory reporting burden allowing your team to focus on the day-to-day business. 
  • ICAAP reporting services – all firms will be required to annually conduct and document is Internal Capital Adequacy Assessment Process (ICAAP) to assess the level of capital that adequately addresses future and current risks in their business. ACA assists firms in developing and documenting their ICAAP as well as advising how the key underlying processes can be embedded in day-to-day governance. 

Contact us at +44 (0)20 7042 0500 to learn more.