26th June 2020

FCA seeks industry views on a new prudential regime for UK investment firms

The Financial Conduct Authority(FCA) has published a discussion paper on a prudential regime for UK investment firms. This marks the first step in introducing a set of prudential rules for investment firms to better reflect their business models and the risk of harm they pose to consumers and markets.

Christopher Woolard, Interim Chief Executive of the FCA, comments "We have long advocated for a bespoke prudential regime for investment firms.
A new UK regime would represent a significant improvement in the prudential regulation of investment firms. For the first time, it would deliver a regime that has been designed with investment firms in mind.”

The information in the Discussion Paper will be of interest to all solo-regulated investment firms that are currently authorised under MiFID. It will also be of interest to Collective Portfolio Management Investment Firms and those investment firms authorised by the Prudential Regulation Authority.
Investment firms and other interested stakeholders will have until 25th September to respond.