The Investment Firm Regulation (IFR), a new prudential framework developed by the European Commission (EC), will apply to all MiFID investment firms from 26 June 2021. The IFR is intended to be simpler and more proportionate to a firm’s operations than existing requirements. This will require the vast majority of investment firms to adapt to a new set of capital, liquidity, and reporting requirements.
For some firms, the IFR introduces a new obligation to conduct an ongoing Internal Capital Adequacy Assessment Process (ICAAP), to document the ICAAP in a formal report at least annually, and to make certain public disclosures.
When the IFR comes into force, some firms may be hit hard with requirements to maintain significantly greater levels of capital.
At ACA, we have a wide range of solutions designed to help you with your IFR obligations. Our prudential team can help you navigate and understand the myriad sources of information and provide guidance on the requirements contained within the European Directives and Regulations, FCA Handbooks and regulatory technical standards from European authorities. This offers relief from the time and effort spent on regulatory reporting.