Prudential Reporting Engine (IFR / CRR)

The Prudential Reporting Engine (IFR / CRR) supports the calculation, structuring, and preparation of prudential regulatory data for supervisory reporting under the EU Investment Firms Regulation and Directive (IFR / IFD), with extended support for CRR-based regimes where applicable.

The IFR framework introduced a fundamentally different prudential approach for investment firms, replacing CRR/CRD with a risk-sensitive model based on K-factors, fixed overheads, and tailored liquidity and capital requirements. Implementing IFR reporting requires firms to manage new calculation logic, data dependencies, and reporting structures while maintaining alignment with EBA technical standards.

REGREP’s Prudential Reporting Engine is designed to operationalise IFR prudential requirements, enabling structured calculations, traceability, and supervisory-ready reporting outputs.

The Investment Firms Regulation and Directive (IFR / IFD) establish a prudential regime specifically tailored to investment firms, distinct from the banking-focused CRR/CRD framework.

Key IFR characteristics include:

• Risk-based K-factor methodology

• Proportional capital and liquidity requirements

• Entity-level and group-level reporting obligations

• Supervisory reporting under EBA-defined technical standards

While some firms remain subject to CRR-based prudential reporting, REGREP’s Prudential Reporting Engine places primary emphasis on IFR / IFPR, reflecting the operational complexity and structural differences of the investment firm regime.

The Prudential Reporting Engine supports the preparation of prudential data required for IFR supervisory reporting, including:

• K-factor calculations (RtM, RtC, RtF categories)

• Own funds and capital requirement metrics

• Fixed overheads requirement

• Liquidity-related prudential data

• Group-level and consolidated reporting structures

The engine is designed to align with EBA IFR reporting frameworks and integrates directly with REGREP’s XBRL conversion and validation capabilities for supervisory submissions.

The Prudential Reporting Engine enables firms to:

• Calculate IFR prudential metrics using structured, repeatable logic

• Manage K-factor inputs and dependencies consistently

• Produce supervisory-ready prudential data aligned with EBA reporting structures

• Maintain traceability between source data, calculations, and reported outputs

• Support both standalone and group-level reporting scenarios

The engine is designed to support operational implementation, not to replace governance, policy interpretation, or regulatory judgement.

Implements structured calculation logic for IFR K-factors, supporting proportional application based on firm classification and activity profile.

Supports calculation and aggregation of own funds, capital requirements, and related prudential metrics under the IFR regime.

Enables structured handling of fixed overheads inputs and derived requirements as defined under IFR.

Supports group-level prudential reporting structures, including consolidation logic and entity relationships relevant to IFR group supervision.

Designed to integrate seamlessly with REGREP’s EBA XBRL Reporting Converter, enabling end-to-end IFR reporting workflows from calculation to supervisory submission.

The Prudential Reporting Engine operates as a core IFR-focused capability within REGREP’s regulatory reporting infrastructure. It is typically used in combination with:

• EBA XBRL Reporting Converter for supervisory submissions

• Regulatory data validation and quality controls

• Group data management and reporting workflows

REGREP does not provide regulatory approval or compliance certification. The engine supports the technical calculation and preparation of prudential reporting data in line with IFR requirements.

Relevant Regulations

• Investment Firms Regulation & Directive (IFR / IFD)

• Capital Requirements Regulation (CRR) (where applicable)

Related Capabilities

• EBA XBRL Reporting Converter

• DORA ROI Reporting Engine

• Regulatory data validation and taxonomy management

The Prudential Reporting Engine is commonly used by:

• Investment firms subject to IFR / IFPR

• Groups with multiple regulated investment entities

• Regulatory reporting service providers

• Consultants supporting prudential reporting implementation