Understanding IFPR Implementation for Investment Firms

The recent released IFPR implementation observations report sheds light on the new regulatory regime for investment firms engaged in Markets in Financial Instruments Directive (MiFID) activities.

This report offers valuable insights into the execution of the Internal Capital Adequacy and Risk Assessment (ICARA) process and reporting under the Investment Firms Prudential Regime (IFPR). It specifically examines the good and poor practices observed among firms since the publication of the regime in early 2023.

Good and Poor Practices

A detailed summary of the good and poor practices FCA can be found here, across various segments of the ICARA process. Firms are encouraged to take into account the good and poor practices highlighted in the reports on Wind-down planning and Assessing liquidity for orderly wind-down.