EU investment firms prudential regime ('IFR/D')

Overview: 

The new EU Investment Firms Regulation (IFR) and Investment Firms Directive (IFD) is a new, bespoke EU prudential regime for MiFID investment firms. The IFD/IFR began to apply to firms from 26 June 2021.

The IFR/IFD introduces own funds, liquidity assets, remuneration, governance, and reporting requirements. Some firms which are below specified thresholds will be subject to a more limited set of requirements. AIMA has provided commentary throughout the framework's legislative process and to the various RTS/ITS that the EBA has sought feedback on.

Upcoming actions: 

If firms are finding compliance with the new requirements complex, AIMA may be able to help by arranging a peer-to-peer discussion group session so people can seek practical solutions from their peers.  If this is of interest, please contact Remmert Keijzer.

(Last updated: 29 June 2021)


Other related workstreams

UK Investment Firms Prudential Regime

Effective 1 January 2022 with two Policy Statements published containing near-final rules. AIMA will shortly be publishing an IFPR implementation guide.

MiFID

From ESMA proposals to modify the scope of the transaction reporting requirement to FCA proposals to remove RTS 27 and RTS 28 best execution reports, reviews of the MiFID II/MiFIR regulatory framework at EU and UK level are currently underway. See here for an overview of developments and AIMA’s regulatory and policy engagement.

EU Remuneration

IFR/IFD remuneration requirements effective as of 26 June 2021. EBA to publish updated IFD remuneration guidelines and ESMA consulting on MiFID remuneration guidelines through 19 October 2021. Notable other EU remuneration requirements under AIFMD and the UCITS Directive are also linked.


Other resources

IFR/D Official Texts

All of the directives, regulations, amending texts, ESA texts, etc. that apply to the prudential regime for EU investment firms all in one spot.