Client case study
A MIFIDPRU Investment Firm Group approached our team to prepare their ICARA process prior to their first MIF007 (ICARA assessment questionnaire) submission to the FCA. The deadline for the MIF007 submission provided tight timelines to prepare the ICARA documentation from start to finish.
Our team utilised the Investment Firm Group’s previous ICAAP submission and latest audited financial accounts and developed an ICARA document template to comply with the IFPR rules in MIFIDPRU and align with our observations of industry best practice. In developing the ICARA, our team had frequent meetings and discussions with senior management across the Investment Firm Group to ensure the assessments were tailored to the size, complexity, risk profile and operations of the Investment Firm Group.
Our team performed and documented capital and liquidity planning, a risk of harms assessments, stress testing, recovery planning and wind down planning. The team also developed bespoke aspects of the ICARA to align with industry best practice, such as developing a communication plan for wind-down.
The engagement resulted in the ICARA being fully documented, reviewed by senior management and the MIF007 submitted prior to the regulatory deadline. The FCA raised no regulatory findings or concerns to the Investment Firm Group following their submission. The Investment Firm Group provided very positive feedback for the quality of the work performed and meeting the required deadlines
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Our experienced prudential regulation and risk management specialists team draws upon their detailed understanding of prudential changes, regulatory expectations, and best practices to provide high-quality services tailored to support your transition to IFPR.
IFPR - enhancing firms’ risk management practices
On February 27th, the Financial Conduct Authority (FCA) published a report highlighting key observations on the implementation of the Investment Firms Prudential Regime (IFPR) and its relation to the Internal Capital Adequacy and Risk Assessment (ICARA) process. This article outlines the four major themes in the FCA’s report and provides insights into how firms can improve their next ICARA process...
Implementing the IFPR: key lessons for firms
On November 27th, the Financial Conduct Authority (FCA) published a second and final report with further observations on how firms are implementing requirements on the Internal Capital Adequacy and Risk Assessment (ICARA) process and reporting under the Investment Firms Prudential Regime (IFPR).
IFPR – The second consultation paper from the FCA
The FCAs second consultation paper(CP21/7) on proposed rules to introduce the Investment Firm Prudential Regime (IFPR) was released on 19 April 2021.
IFPR – The first consultation paper
In December 2020, the FCA detailed some of their proposals for the Investment Firm Prudential Regime (IFPR), which will come into effect in January 2022.
New prudential regime for UK investment firms
Over summer 2020, the UK Government and Regulators shared their views on the European Union’s new Investment Firm Prudential Regime for MiFID investment firms. More importantly, it gave indications of what could happen in the UK.
National contacts
Huseyin Sahin Partner - Banking Risk Consulting - London
Breda Griffin Director - Financial Services Consulting - London
Anindya Ghosh Chowdhury Director - Risk and Regulatory Consulting - London
Paul Hamalainen Director - RegCentre-Sustainability & Prudential - London
IFPR - How to prepare video series
Since January 1st 2022, the deadline for firms in scope for MiFID 2 to implement a new prudential regime known as IFPR, there are certain criteria that firms will have to know, implement, and abide by.