FCA Discussion Paper DP20/2

A new UK prudential regime for MiFID investment firms

“This discussion paper marks the first step in introducing a set of prudential rules for investment firms to better reflect their business models and the risk of harm they pose to consumers and markets”.The FCA “will use it to inform our consultation to introduce a UK prudential regime for investment firms. It provides stakeholders with the details of the EU Investment Firms Directive and Regulation (IFD/IFR), and requests industry feedback on the design of a UK regime”.

“As stated by the Chancellor in his 11 March Budget, the Government intends to legislate to introduce a new prudential regime for UK investment firms”. The Discussion Paper will be of interest to “Solo-regulated investment firms that are currently authorised under MiFID. This includes firms that are currently subject to any part of the Capital Requirements Directive (CRD) and the Capital Requirements Regulation (CRR). It will also be of interest to Collective Portfolio Management Investment Firms and those investment firms authorised by the Prudential Regulation Authority”.

Read the full Discussion Paper here.