Why we have introduced the IFPR
The IFPR aims 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 refocuses 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 is subject to the IFPR
The IFPR applies to:
- 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.
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 and FCA 2021/50.
Firms that may be part of a financial conglomerate should also refer to our related amendments in FCA 2021/51 to certain technical standards under the onshored Financial Conglomerates Directive regime.
The IFPR rules are in our Handbook:
- The new MIFIDPRU sourcebook is in the Prudential Standards block
- The MIFIDPRU Remuneration Code (SYSC 19G) is in the SYSC sourcebook, within in the High Level Standards block
In 2021, we published general guidance on the application of ex-post risk adjustment to variable remuneration. This guidance explains our expectations on malus and clawback, including on how they should be invoked in an effective, timely, consistent and transparent way. We consulted on whether to extend 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:
You can sign up to our IFPR newsletter by emailing [email protected] with ‘sign up’ in the subject line. The IFPR newsletter provides updates on the IFPR, IFPR resources and on any upcoming regulatory deadlines.
We hosted two IFPR webinars on 30 November 2021. The first webinar covered more technical aspects of the IFPR, such as groups and own funds requirements. The second webinar focused on some more practical aspects of the regime such as the ICARA process, reporting, and the applications and notifications process.
Both webinars are available to re-watch here. You will need to register to access the recording. The slides will be available to view once you have registered.
MIFIDPRU applications and notifications
Our gateway for MIFIDPRU applications and notifications is now open.
All application forms for the MIFIDPRU permissions as well as majority of MIFIDPRU notification forms are now available and must be submitted via Connect. The remaining MIFIDPRU notification forms will be made available on Connect in late January 2022.
If you wish to view a specific application or notification form, they can be found in Annexes at the end of each chapter of MIFIDPRU Handbook text. Final versions of all MIFIDPRU forms can be found in the following legal instruments: FCA 2021/38 and FCA 2021/49.
All MIFIDPRU forms are reproduced below for information only.
Changes to MiFID authorisation applications
As part of the implementation of the IFPR we have been updating our authorisation forms so that they reflect the new regime.
Further information on how to complete these forms can be found in the following guidance notes:
- MiFID annex notes
- MIFIDPRU supplement form notes
We are currently in the process of updating our other authorisation forms so that they reflect the new regime. This includes a new variation of permission form on Connect, which will be available in late January 2022.
IFPR set-up questionnaire
We are in the process of analysing responses to the IFPR set-up questionnaire and assisting firms with their queries. It is mandatory for firms to complete and return the set-up questionnaire. The output from the questionnaire provides us with vital data needed for the purpose of setting firms up on our systems, including their reporting schedules. If your firm has not yet responded to the questionnaire, please do so as soon as possible. If you have not received the questionnaire but believe you should have, please email us.