Overview:

The AIFMD, UCITS Directive and the UK’s investment firm prudential regime (IFPR) introduce various remuneration requirements on UK managers, ranging from certain limitations to variable remuneration, to the disclosure of quantitative and qualitative information on remuneration policies and practices. The IFPR is set to take effect on 1 January 2022 and introduces new remuneration requirements for UK MiFID investment firms and are divided in basic, standard, and extended remuneration obligations which may run in parallel to the requirements under the AIFMD and/or UCITS Directive.

The IFPR will apply to any MiFID investment firm authorised and regulated by the Financial Conduct Authority that is currently subject to any part of the Capital Requirements Directive (CRD) and the Capital Requirements Regulation (CRR) including investment firms subject to IFPRU or BIRPU, matched principal dealers and exempt CAD-firms, among others.  The IFPR will extend the remuneration requirements to large or interconnected CPMI firms and will be effective as of 1 January 2022.