The FCA has made its new capital rules for investment firms, reducing the wordcount of relevant rules by 70% in the process.
The rules apples to all entities that are subject to MIFIDPRU. There are no changes to the overall levels of regulatory capital required or how firms structure their capital holding. The changes strip out all references to the UK CRR from MIFIDPRU 3 and:
- clarify what qualifies as “own funds”; and
- remove provisions not relevant to investment firms and generally reduce complexity.
The changes add several new terms to the Glossary, insert a new MIFIDPRU 3.1A in place of the current MIFIDPRU 3.1 and make other consequential changes to MIFIDPRU, and take effect on 1 April 2026.