Updated: May 22, 2021
Investment firms will be delighted to hear that the timeframe for the prudential rule change has been delayed with HM Treasury now targeting January 2022 as the implementation date.
Previously, it was expected that the new UK’s Investment Firms Prudential Regime (IFPR) would be implemented by the middle of 2021.
This would have meant that the new prudential regime became law at the same time as all the on-shoring of existing EU regulation.
Following industry feedback about the level of regulatory change firms will already be adapting to, this delay has been announced. It is intended to give firms the chance to get on top of the changing regulation post-Brexit, before needing to also apply the prudential changes.
Given the potential for your firm to need additional capital, it is still worth having this change on your radar. Advance planning will be particularly critical for investment firms how have held low capital to date, for example many exempt-CAD firms, as the proposed increase of capital could be significant for your business.
There is a short statement about the delay on the FCA's website.