The FCA issues a Policy Statement to implement the prudential regime applicable to Investment Firms (the IFPR).

The regime will apply to many UK registered firms:

  • any MiFID investment firm authorised and regulated by the FCA that is currently subject to any part of the Capital Requirements Directive (CRD) and the Capital Requirements Regulation (CRR)
  • including amongst others investment firms that are currently subject to BIPRU and GENPRU

This is the “final act” in the Brexit process and the dissociation of the UK prudential regime from EU regulations, for that sector of activity.

The FCA state on their website that “[their] baseline approach is for consistency with the EU regime, unless [they] have specific reasons for diverging to reflect the nature of the UK market or otherwise comply with [the FCA] duties under Part C of FSMA (as inserted by the FS Act)”.

The IFPR will take effect very shortly: on 1 January 2022.

FCA IFPR main page:

FCA PS21/17: