What is the IFD/IFR?

The EU’s Investment Firms Directive (IFD) and Investment Firms Regulation (IFR) puts in place a new prudential framework for MiFID authorised investment firms in Ireland and rest of the EU and aims to streamline the regulation so that it is proportionate to different firms.

IFD deals with supervisory matters while the IFR deals with prudential requirements. The IFR is a directly effective regulation and has applied in Ireland from 26 June 2021. Regulations are needed to transpose the IFD into Irish Law, and while this has not yet been published, the Minister for Finance is expected to sign them into law soon.

Who does it apply to?

All investment firms which are authorised by the Central Bank of Ireland (CBI) in accordance with the provisions of MiFID should consider how the IFD/IFR will affect them.

What are the changes?

The IFD/IFR represents major changes for investment firms. The new directive allows for different regulation of investment firms dependent on the firm’s business activities, risk profile and structure which also determines its new prudential classification.

As an investment firm, you need to plan ahead. You need to:

• Determine your classification
• Apply for re-authorisation where appropriate
• Identify changes you need to make to capital, liquidity, reporting, consolidation, governance, risk, remuneration and disclosure.

How can we help?

Whether you’re just kick-starting the process or are almost there and need an external review to ensure all areas are covered and gaps are filled, contact our team of prudential experts today. We have many years of experience in the investments industry and are currently assisting numerous clients in preparing for the changes driven by the IFD/IFR.

Don’t delay, talk to us today.