Third consultation on new prudential regime for UK investment firms

We are asking UK investment firms to provide feedback on the UK Investment Firm Prudential Regime (IFPR).

The IFPR will introduce a single, proportionate regime reflecting the size and business of MiFID investment firms regulated by the FCA. It should help to improve competition between firms and simplify matters for new entrants.

In the last of our 3 consultations we are asking for views on:

  • disclosure 
  • own funds – excess drawings by partners and members
  • technical standards
  • depositaries
  • changes to our Handbook to reflect changes to the UK resolution regime
  • other consequential changes to our Handbook
  • our use of new powers introduced under Part 9C of FSMA
  • See more on our proposed new rules here

We’re asking for feedback on this consultation by Friday 17 September 2021.

About this consultation

The UK IFPR rules aim to streamline and simplify prudential requirements for solo-regulated UK firms, authorised under the Markets in Financial Instruments Directive (MiFID).

The first consultation introduced the UK IFPR and focused on the categorisation of investment firms, prudential consolidation, own funds and aspects of own funds requirements, and reporting.

The second consultation focused on the remaining aspects of own funds requirements, liquidity, risk management, governance, remuneration, applications and notifications.

We published the Policy Statements and near-final rules for the first and second consultations in June 2021 and July 2021 respectively.

Following this consultation, we will publish a Policy Statement and final rules for the whole regime in autumn 2021.