UK Investment Firms Prudential Regime (IFPR / MIFIDPRU): Overview, Scope & Reporting Requirements

Overview

The UK Investment Firms Prudential Regime (IFPR) is the prudential framework governing UK-authorised investment firms, introduced following the UK’s withdrawal from the European Union. The regime is implemented primarily through the FCA’s MIFIDPRU sourcebook and replaces the previous application of EU CRR/CRD rules to investment firms.

IFPR is closely aligned with the EU’s IFR / IFD framework, but is tailored to the UK regulatory environment. Its objective is to ensure that investment firms maintain adequate financial resources, manage risk proportionately, and submit consistent prudential reporting to UK supervisors.

The IFPR regime became applicable from 1 January 2022.

Legal Context

The IFPR framework is overseen and enforced by the Financial Conduct Authority (FCA), with prudential supervision structured through the MIFIDPRU sourcebooks, FCA rules, and associated guidance.

Where relevant, coordination with the Prudential Regulation Authority (PRA) may apply for dual-regulated firms, though IFPR primarily falls under FCA supervision.

IFPR draws heavily on international standards and mirrors many concepts introduced under the EU IFR framework, including risk-based capital requirements and structured supervisory reporting.

Applicability

IFPR applies to UK-authorised MiFID investment firms, including:

• Broker-dealers

• Portfolio management firms

• Proprietary trading firms

• Advisory and execution-only firms

• UK investment firms operating under MiFID permissions

Firms are classified based on:

• Size

• Activities

• Risk profile

• Whether they deal on own account or hold client money/assets

These classifications directly determine capital requirements and reporting obligations.

Obligations

The IFPR framework introduces a risk-sensitive prudential regime, including:

• K-Factor capital requirements

• Own funds and capital adequacy calculations

• Fixed overhead requirements

• Liquidity requirements

• Concentration risk monitoring

• Governance, remuneration, and risk management expectations

These obligations are formalised through FCA rules and guidance, supported by structured reporting requirements.

Reporting

Investment firms subject to IFPR must submit regular prudential reports to the FCA, including:

• Own funds and capital adequacy metrics

• K-Factor calculations

• Liquidity and concentration risk data

• Group-level reporting (where applicable)

Reporting is submitted using FCA-defined data formats, aligned with MIFIDPRU requirements and validation rules.

Manual preparation, spreadsheet-based processes, and fragmented data sources significantly increase the risk of:

• Data inconsistencies

• Validation failures

• Late or inaccurate submissions

Reporting

Common operational challenges include:

• Complex K-Factor calculations across multiple business lines

• Fragmented financial and risk data

• Evolving FCA reporting guidance

• Manual data transformation and validation

• Limited auditability and historical traceability

These challenges increase operational burden and supervisory risk, particularly as reporting expectations mature.

REGREP Solution

REGREP supports IFPR / MIFIDPRU exclusively as regulatory reporting infrastructure, enabling firms to operationalise FCA prudential reporting requirements.

REGREP provides:

• Structured ingestion of prudential and risk data

• Calculation support aligned with MIFIDPRU logic

• Automated generation of FCA-ready prudential reports

• Built-in validation and consistency controls

• Full auditability and historical reporting records

• API-first integration with finance, risk, and core systems

REGREP supports the technical preparation and submission of IFPR reports and does not replace internal governance, risk ownership, or supervisory responsibility.

• Financial Conduct Authority (FCA)

Links are provided for reference purposes only. REGREP is not affiliated with or endorsed by any regulatory authority.

• Investment Firms Regulation & Directive (IFR / IFD)

• EBA XBRL Reporting

• UK Regulatory Reporting Infrastructure