Our May briefing looked at the final version of the new prudential rules and how to prepare. We also focused on wider issues such as the impact on conduct risk and governance.
After a long wait, the new prudential regime for investment firms has now been finalised, and there are a few surprises in the final text.
The EU Parliament has passed the Financial Supervision of Investment Firms Regulation (IFR) and the related Directive (IFD), which is expected to come into effect in Q1 2021.
Now we know exactly what the new rules entail the hard work of implementation needs to start.
For the first time, firms will need to calculate Pillar 1 capital based on their activity levels which is designed to address operational risk and therefore also covering some conduct risk. For some, that will be a big change as conduct risk assessments and measures are not generally geared towards informing the prudential position of the firm.
Our May briefing covered what’s changed (and what hasn’t) since the earlier drafts, the impact on conduct risk and what you need to next.
To find out more information about any of the topics covered or to request a copy of the slides please get in touch at email@example.com.