CP20/24: A new UK prudential regime for MiFID investment firms

Open consultation: CP20/24
Consultation closes

We are consulting on our first phase of proposed rules to introduce the UK Investment Firm Prudential Regime (IFPR). IFPR is a new prudential regime for UK firms authorised under the Markets in Financial Instruments Directive (MiFID).

Read CP20/24 (PDF)

Why we are consulting

The new regime will streamline and simplify the prudential requirements for solo-regulated investment firms in the UK.

It represents a major change for investment firms. It is critical that firms adequately prepare for the regime.

This is the first in a programme of Consultation Papers (CP) and Policy Statements (PS) that we will issue to introduce the regime.

Your feedback will allow us to draft final rules that achieve our and Parliamentary objectives for the regime.

We are also publishing the proposed template for the new reporting to support the Investment Firms Prudential Regime and the guidance for completing this template. We would welcome any feedback on these in addition to your feedback on this CP.

Who this applies to

The draft rules will apply to any MIFID investment firm that are currently subject to any part of the Capital Requirements Directive (CRD) and the Capital Requirements Regulation (CRR). These include: 

  • investment firms that are currently subject to BIPRU and GENPRU
  • ‘full scope’, ‘limited activity’ and ‘limited licence’ investment firms currently subject to IFPRU and CRR
  • ‘local’ investment firms
  • matched principal dealers
  • specialist commodities derivatives investment firms that benefit from the current exemptions on capital requirements and large exposures including:
  • oil market participants (OMPs)
  • energy market participants (EMPs)
  • ‘exempt-CAD’ firms 
  • investment firms that would be exempt from MiFID under Article 3 but have ‘opted-in’ to MiFID

The draft rules will also apply to any regulated and unregulated holding companies of groups that contain an investment firm that are currently authorised under MiFID and or a Collective Portfolio Management Investment (CPMI).

Respond to this consultation

We are asking for comments on this CP by 5 February 2021.

Online response form

Or in writing to: Paul Rich or Hillary Neale, Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN

Telephone: 020 7066 1000

Email: [email protected]