The FCA has published its third and final consultation on the IFPR. The IFPR creates a new regime for solo-regulated MiFID investment firms.
The first consultation introduced the IFPR and focussed on the categorisation of investment firms, prudential consolidation, own funds and aspects of own funds requirements, and reporting. The second consultation focussed on the remaining aspects of own funds requirements, liquidity, risk management, governance, remuneration, applications and notifications.
This third consultation covers:
- disclosure – including proposals that non-SNIs should disclose information about their risk management and governance arrangements, and about their own funds, own funds requirements and investment policy;
- own funds – the FCA is proposing a rule to address the situation where excess drawings can be made by partners or LLP members without being recorded as a loss and instead are treated as a loan to partners or members;
- technical standards – in most cases, the FCA is proposing that firms should apply the onshored technical standards with specific modifications that are set out in MIFIDPRU;
- depositaries – including proposals to amend the requirements that depositaries must meet so that they no longer have to have permission to deal on own account, and to allow other FCA investment firms to act as a depositary where they also provide the MiFID ancillary service of safe-keeping and administration of financial instruments;
- changes to the FCA Handbook to reflect changes to the UK resolution regime; and
- use of the FCA’s new enforcement powers introduced under Part 9C FSMA.
The consultation closes on 17 September 2021.
A further policy statement and final rules will follow later in the year before the new regime takes effect in January 2022.