Skip to search box Search Search Main navigation About us Firms Markets Consumers News Publications Home Firms Investment Firms Prudential Regime (IFPR) Investment Firms Prudential Regime (IFPR) First published: 30/06/2021 Last updated: 26/11/2021 See all updates The IFPR is our new prudential regime for MiFID investment firms. Find out who will be affected and how to prepare. Why we are introducing the IFPR The aim of the IFPR is to streamline and simplify the prudential requirements for MiFID investment firms that we prudentially regulate in the UK (FCA investment firms). In line with our objectives and Mission, it will refocus prudential requirements and expectations away from the risks firms face, to also consider and look to manage the potential harm firms can pose to consumers and markets. Who will be subject to the IFPR The IFPR will apply to the following: MiFID investment firms authorised and regulated by us Collective Portfolio Management Investment Firms (CPMIs) regulated and unregulated holding companies of groups that contain either of the above The IFPR will not apply to PRA designated investment firms. They will remain subject to prudential supervision by the PRA. Timeline We have now converted the near-final rules from our first two policy statements of the Investment Firms Prudential Regime (IFPR) into final rules. We have also added additional final rules in our third policy statement. The new regime will come into force on 1 January 2022. Final rules and guidance The final rules from our first and second policy statements are in the legal instruments – FCA 2021/38 and FCA 2021/39. You can read a summary of minor updates made since we published the near-final versions of the instruments in PS21/9. The final rules from our third policy statement are in the legal instruments - FCA 2021/49, FCA 2021/50 and FCA 2021/51. You can now view the text of our final IFPR rules in the online FCA Handbook. To do this, select the 'show timeline' function and set the version date to 1 January 2022. The text of the new MIFIDPRU sourcebook will be contained in the Prudential Standards block. The text of the MIFIDPRU Remuneration Code (SYSC 19G) will be contained in the SYSC sourcebook in the High Level Standards block We have published FG21/5: General guidance on the application of ex-post risk adjustment to variable remuneration. This guidance provides further detail of our expectations on malus and clawback, including on how they should be invoked in an effective, timely, consistent and transparent way. We consulted as part of CP21/7 on extending the existing guidance to FCA investment firms. Remuneration Policy Statement templates We have published templates for Remuneration Policy Statements (RPS) which FCA investment firms may (but do not have to) use to record how their remuneration policies and practices comply with the MIFIDPRU Remuneration Code: RPS template Table of material risk takers (MRTs) Prepare for the IFPR The IFPR represents a major change for FCA investment firms. If you’re an FCA investment firm, it’s critical that you prepare for the regime. You should familiarise yourself with our consultation proposals and final rules, so you are ready to meet the implementation date of 1 January 2022. You can also sign up to our new IFPR newsletter by emailing IFPR-newsletter@fca.org.uk with ‘sign up’ in the subject line. MIFIDPRU applications and notifications Our gateway for MIFIDPRU applications is now open. Application forms for the MIFIDPRU permissions listed below are now available and must be submitted via Connect. They are reproduced here for information only. These are the types of MIFIDPRU permissions that firms will need to apply for in advance of MIFIDPRU coming into force. Permission under MIFIDPRU 2.3.2R to be exempt from individual liquidity requirements in MIFIDPRU 6 for firms in a consolidated group Permission under MIFIDPRU 2.4.17R to apply the group capital test to an investment firm group instead of prudential consolidation Permission under MIFIDPRU 2.5.19R to be exempt from consolidated liquidity requirements Permission under MIFIDPRU 2.5.34R(2) to use offsetting positions when calculating K-NPR on a consolidated basis Permission under MIFIDPRU 2.5.40R to include a portfolio of a designated investment firm in a consolidated K-CMG requirement Permission under MIFIDPRU 2.5.41R to include a portfolio of a third country entity in a consolidated K-CMG requirement Permission under MIFIDPRU 4.13.9R to apply K-CMG to a portfolio, instead of K-NPR Permission under MIFIDPRU 4.14.6R to exclude transactions with some counterparties from K-TCD requirement Permission under MIFIDPRU 3.3.3(1)R to classify an issuance of capital instruments as common equity tier 1 (CET1) capital We will make the remaining application forms and all notification forms available in the autumn. Please see chapter 15 of CP21/7 for the details of these forms. In CP21/26 we consulted on three additional forms, which once finalised, will also be made available on Connect later this year. Changes to MiFID authorisation applications Firms seeking authorisation under MiFID will now see in their application form pack an additional form they need to complete as part of the process. This is the MIFIDPRU supplement form. This form requests information from applicant firms so we can assess their ability to meet the IFPR requirements in advance of the new regime coming into force. It will also ensure that we can set applicants up on the appropriate reporting schedules once their applications have been determined. We have also put together a MIFIDPRU supplement form notes document which will help applicant firms complete the MIFIDPRU supplement form. We are currently in the process of reviewing our authorisation forms to make sure they reflect the necessary changes ahead of the new regime coming into force. The MIFIDPRU supplement form will also be updated nearer the time in line with our final rules and to ensure consistency with other forms. We will update this webpage to provide more information as our work progresses. IFPR set-up questionnaire We will be sending out a questionnaire to all existing FCA investment firms in November asking for various key information, such as their expected SNI status, investment firm group membership/composition and expected ICARA reporting date. This will provide us with the information we need to set up reporting schedules and update our systems. We will provide updates on this questionnaire on this webpage and as part of the monthly Regulation Round-up. Page updates Was this page helpful? Yes No Submit Feedback Print Page Linkedin Twitter Share page In this section Amendments to the IFPR Instrument 2021 since publishing the near-final version More on IFPR DP20/2: A new UK prudential regime for MiFID investment firms CP20/24: A new UK prudential regime for MiFID investment firms CP21/7: A new UK prudential regime for MiFID investment firms PS21/6: Implementation of Investment Firms Prudential Regime PS21/9: Implementation of Investment Firms Prudential Regime CP21/26: A new UK prudential regime for MiFID investment firms PS21/17: A new UK prudential regime for MiFID investment firms Register for the IFPR webinars on 30 November 2021 Accessibility Complain about us Copyright notice Corporate responsibility Cymraeg Freedom of information Modern Slavery and Human Trafficking Statement Privacy Sitemap Translated languages Social LinkedIn RSS Feed Twitter Registers and Systems Careers Contact Plain Language Commission Gold Award Copyright © 2021 FCA. All rights reserved. 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