FCA 3rd consultation – CP21/26 – IFPR prudential regime for UK investment firms

FCA 3rd consultation – CP21/26 – IFPR prudential regime for UK investment firms


  • On 6 August 2021, the Financial Conduct Authority (FCA) published its third consultation paper (CP) on its new prudential regime for UK investment firms
  • The FCA is asking UK investment firms to provide feedback on the UK Investment Firm Prudential Regime (IFPR)
  • The IFPR will introduce a single, proportionate regime reflecting the size and business of MiFID investment firms regulated by the FCA.
  • The FCA hopes that the IFPR will help to improve competition between firms and simplify matters for new entrants.
  • CP21/26: A new UK prudential regime for MiFID investment firms | FCA


In the last of its three consultations, the FCA is asking for views on:

  • disclosure
  • own funds – excess drawings by partners and members
  • technical standards
  • depositaries
  • changes to the FCA Handbook to reflect changes to the UK resolution regime
  • other consequential changes to the FCA Handbook
  • the FCA’s use of new powers introduced under Part 9C of FSMA

The UK IFPR rules aim to streamline and simplify prudential requirements for solo-regulated UK firms, authorised under the Markets in Financial Instruments Directive (MiFID).

The first consultation introduced the UK IFPR and focused on the categorisation of investment firms, prudential consolidation, own funds and aspects of own funds requirements, and reporting.

The second consultation focused on the remaining aspects of own funds requirements, liquidity, risk management, governance, remuneration, applications and notifications.

  • Following this consultation, the FCA will publish a Policy Statement and final rules for the whole regime in autumn 2021.

The FCA published the Policy Statements and near-final rules for the first and second consultations in June 2021 and July 2021 respectively.

Timeline with relevant dates to be logged on regulatory calendar

  • Consultation closes on 17 September 2021

Next steps

Any respondents need to send their comments to the FCA.   The FCA website contains an online form or contact through your regular channels to supervisors.

If anyone has specific questions or needs any advice, contact our specialists.

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