The UK will introduce a new regulator to supervise investment firms in 2022 and the top City watchdog now wants to hear from market stakeholders.
The rules will be finalised over the next year before the new Investment Firm Prudential Regime (IFPR) will come into force in January 2022.
The idea is that IFPR will streamline and simplify the prudential requirements for the roughly 3,200 solo-regulated investment firms in the UK. At present, there are many different regimes which apply depending on size of firm and type of investment business.
The new rules also pay extra emphasis to firms acting in their clients best interest and that they consider the potential harm FCA investment firms pose to clients, consumers and the market.
This includes the amount of capital and liquid assets the FCA investment firm should hold so that if it does have to wind down, it can do so in an orderly manner.
Before the new rules are introduces, the Financial Conduct Authority (FCA) will spearhead three consultations with market stakeholders.
The first of these three consultations is now open and will close on Friday February 5, 2021.
The consultation follows a discussion paper published in June this year, which set out the FCA’s initial views on introducing the IFPR, as well as technical details on the European Union’s Investment Firm Directive and the Investment Firm Regulation.
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