IFPR: CP2 and your ICARA

The FCA has kept its promise, publishing the second IFPR consultation this month. Number two of the three planned papers gives more detail on what MiFID firms must do under the UK’s new prudential regime.

This time the focus is on governance, remuneration and the remaining K-factors not discussed in the first CP. Importantly, the FCA also sets out clearer expectations on the ICARA – the risk-based document all firms will need to prepare. An unexpected inclusion is for recovery and wind down planning – a step change for smaller firms.

While the FCA has provided some guidance and headings on what it wants firms to include in the ICARA, it is still at a very high level and firms will have to do a lot of the work and thinking on their own.

In our IFPR webinar, we looked at some of the new concepts in the CP including ICARA, K-Factors and Overall Financial Adequacy Rule, and looked at some practical actions you can take to get ready.