DP20/2: Prudential requirements for MiFID investment firms

Open consultation: DP20/2
Consultation closes

In this Discussion Paper we set out initial views as well as technical details on the Investment Firm Directive (IFD) and the Investment Firm Regulation (IFR). The Government will be introducing a framework for the new prudential regime for UK firms. We are seeking views on how best to implement this.

Read DP20/2

This discussion paper marks the first step in introducing a set of prudential rules for investment firms to better reflect their business models and the risk of harm they pose to consumers and markets.

We will use it to inform our consultation to introduce a UK prudential regime for investment firms. It provides stakeholders with the details of the EU Investment Firm Directive and Regulation (IFD/IFR), and requests industry feedback on the design of a UK regime.

Annex 3 of this discussion paper provides a table to help all types of MiFID investment firms access its detailed content and determine the parts most relevant to their business models.

Who this applies to

This will be interest all solo-regulated investment firms that are currently authorised under MiFID. It will also be of interest to Collective Portfolio Management Investment Firms and those investment firms authorised by the Prudential Regulation Authority.


On 17 August 2020 we hosted the Prudential requirements for MiFID investment firms webinar, which is available to view on demand.

Next steps

Please send us your comments and/or responses to the questions on our potential implementation proposals by 25 September 2020 via the online response form, or by writing to us via email or the postal address on page 2 of the paper.


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