A guide to the ICARA
- Date: 28 September 2021
- Format: Upcoming webinar
SERIES: UNDERSTANDING AND PREPARING FOR THE UK INVESTMENT FIRMS PRUDENTIAL REGIME (IFPR)
Webinar: 28 September 10am - 11am BST
The Investment Firms Prudential Regime (IFPR) comes into force on 1st January 2022 and it introduces a new capital adequacy and risk assessment and supervisory review and evaluation process - the Internal Capital and Risk Assessment (ICARA).
Our one-hour webinar:
- Steers you through the implementation and management processes.
- Details the documentation you need to produce.
- Discusses challenges and ways to overcome them.
- Gives you an opportunity to raise questions with compliance specialists.
At the end of the webinar you will understand how this affects your firm and you will have a 'step-by-step' implementation guide (whether you already undertake a ICAAP or are facing this type of process for the first time).
The webinar will be hosted by three of our leading compliance experts, Kumar Ved, Harpartap Singh and Jonathan Aseervatham:
Kumar Ved is Managing Director responsible for all of our consulting activities in the Banking, Payments, Capital Markets and Asset Management sectors.
Harpartap Singh is a recognised regulatory capital and liquidity specialist and is responsible for the development and expansion of Compliancy Services’ Prudential Services' offerings and client service delivery.
Jonathan Aseervatham joins Compliancy Services on 20 September 2021 from Buzzacott. He will be a Director of our Prudential Services team with responsibility for delivery of our range of Prudential Services including ICARAs advice and consultancy.
IFPR will affect all FCA prudentially regulated MiFID investment firms, including principal brokers and matched principal brokers; investment managers; and adviser/arranger firms categorised as ‘exempt-CAD’.
The new rules present major changes, requiring some firms to hold much more capital and introducing new obligations such as the ICARA. 3,600 firms will be affected and around one third will face a significant impact, including the requirement to implement new processes, policies and procedures (source: FCA CP21/7 published May 2021).
IFPRU and BIPRU firms already must carry out their own assessments of the risks that they face and the amounts of capital that they deem sufficient to meet those risks, if they were to arise - it's called the Internal Capital Adequacy Assessment Process (ICAAP). ICAAPs are being replaced by the ICARA and all firms regulated under the IFPR will be required to have an ICARA. This means that some firms will face these processes for the first time, whilst others will need to adapt to meet the ICARA requirements.
Whilst the ICARA is similar in some respects to the current ICAAP, there are a number of material differences. Perhaps the most significant differences are the requirement for a wind down plan and that the ICARA should not be treated as a once-a-year exercise with mere senior management sign-off. Instead, it is expected that senior management lead and be fully involved in the ICARA process and that this forms part of ongoing governance and risk management processes.