UK FCA Publishes Second Policy Statement On The Implementation Of The IFPR

On 26 July 2021, the UK Financial Conduct Authority ("FCA") published its second policy statement (PS21/9) ("PS2") in relation to the UK Investment Firms Prudential Regime ("IFPR"). PS2 is the second of a series of policy statements that sets out the FCA's rules to introduce the IFPR. PS2 summarises the feedback received by the FCA in respect of its second consultation paper on the IFPR. The IFPR is expected to take effect in January 2022, subject to the UK Treasury making the necessary secondary legislation.

As detailed in our previous alert relating to the FCA's first policy statement, the IFPR sets out a new UK prudential regulatory framework for investment firms authorised under the Markets in Financial Instruments Directive (EU/2014/65) ("MiFID"). For further details about the new prudential regime in general, please refer to our June 2020 update.