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23 November 2021

Financial advisers only have until the end of the week to get to grips with the Investment Firm Prudential Regime (IFPR).

You must respond to the FCA’s IFPR questionnaire by November 26, which requires a rudimentary understanding of the legislation.

B-Compliant director, Vicky Pearce, said: “We know from first-hand experience that lots of advisers are not ready for the introduction of IFPR in January, but now the FCA has put them on the spot by giving firms just two weeks to respond to its questionnaire. Without a basic grasp of the new legislation and how it impacts them, they will be unable to meet Friday’s deadline.”

IFPR will be implemented on January 1. It is an update to the Markets in Financial Instruments Directive (MiFID) that will see the prudential terms, BiPRU and IFPRU, scrapped and replaced by the umbrella definition ‘investment firms.’ The changes apply to all firms authorised and regulated by the FCA (including those currently classified as Exempt-CAD), Collective Portfolio Management Investment Firms and holding companies of groups containing any of the aforementioned investment firm types.

Vicky added: “The biggest change will be for those outside the full scope of the existing regulations, in particular Exempt-CAD firms who find themselves inside IFPR. We would urge all advisers, regardless of classification, to review the new legislation, ensure they understand the obligations it places on them and begin to action the changes they need to make to policies and procedures. We have already had a number of clients contact us for assistance with the FCA’s questionnaire and we urge those who are yet to complete it not to delay any longer.”

IFPR is intended to strengthen the integrity of financial markets and provide consumers with greater protection and consistency by simplifying the regimes that apply to different types of investment firms. The FCA believes this will minimise the risk of harm to consumers and the market, whilst easing barriers to entry and facilitating better competition.

If you would like help preparing for IFPR or completing the FCA questionnaire, don’t hesitate to contact us on (0161) 521 8641 or email: info@b-compliant.co.uk

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