FCA IFPR Newsletter
On 1 September 2025, the Financial Conduct Authority (FCA) published its latest Investment Firms Prudential Regime (IFPR) newsletter, setting out expectations on matters related to the IFPR.
In this newsletter, the FCA covered the following issues:
• Notification of changes to Investment Firm Groups (IFGs): The FCA reminded firms that they must make a notification as they become aware of the creation of or change to an of an IFG, and that firms must ensure that all information held by the FCA in relation to the relevant IFG is accurate.
• Common Equity Tier 1 (CET1) and Limited liability partnerships (LLPs): The FCA noted that it has observed that some LLPs may have incorrectly treated allocated profits as a CET1 item for the purposes of meeting own funds requirements and sets out issues that firms should consider for determining whether the relevant criteria are met.
• Calculation of certain K-factors: The FCA noted that firms had asked for clarification on how to calculate certain K-factor requirements and sets out an example calculation that can then be applied in a range of scenarios.
• Internal Capital Adequacy and Risk Assessment (ICARA) and errors in MIF007 reporting: The FCA noted that it had observed errors in this reporting as part of its supervisory work. For example, it reminded firms that the time between completion of the ICARA and its approval by the governing body must be reasonable, and it also highlighted errors in the reporting of the Own Funds Threshold Requirement and the Liquid Assets Threshold Requirement.
• Accounts Submission – Small Companies’ exemption: The FCA explained that it had found that some MiFID investment firms may have incorrectly used the small exemption in relation to the submission of accounts to Companies House and recommends that Senior Managers review their approach to this.