The FCA is seeking views on its proposed rules to introduce the UK Investment Firm Prudential Regime (IFPR) for FCA prudentially-regulated investment firms (FCA investment firms).
The FCA have confirmed that this is the first of 3 consultations that the FCA will issue to introduce the regime in January 2022. Final rules will be published over the course of next year. Where possible the FCA is consulting earlier on the more complex topics to give investment firms as much time as possible to ready themselves.
The new regime will streamline and simplify the prudential requirements for solo-regulated investment firms in the UK. The new rules will extend the framework for prudential requirements to consider the potential harm FCA investment firms pose to clients, consumers and the market. This includes the amount of capital and liquid assets the FCA investment firm should hold so that if it does have to wind down, it can do so in an orderly manner.
Whilst this isn't core to many AFEP members, for those of you with an investment firm within your organisation structure, the FCA is keen to receive feedback you to allow it to develop final rules that achieve the objectives and are workable.
The consultation period for this first consultation closes on Friday 5 February 2021.