Latest FCA consultation focuses on remuneration, risk management and governance, and liquidity requirements.
On 19 April 2021, the FCA published its second Consultation Paper (CP21/7) on the new UK investment firms prudential regime (IFPR). The IFPR will create a new prudential regime for FCA-authorised MiFID investment firms, and will reflect (but not mirror exactly) the EU IFD/R regime. For an overview of the proposed UK regime, please see this Client Alert.
The second consultation covers, amongst other topics, remuneration, risk management and governance, and liquidity requirements, and consults on own funds requirements not covered in the first consultation (CP20/24). Comments are requested by 28 May 2021, so firms should note that they do not have long to respond. The IFPR is set to take effect on 1 January 2022.
For more detail, please see the full Client Alert.