Introduction

The new prudential regime introduced new categorization of the investment firms. In particular, the new regulation classified the investment firms into Class 1A, Class 1B, Class 2 and Class 3 under certain conditions based on their activities, systemic importance, size and interconnectedness.

According to the new prudential regime, investment firms classified as Class 1A and Class 1B are supervised under Regulation (EU) 2019/876 (“CRR II”)/Directive (EU) 2019/878 (“CRD V”) capital framework, which came into force from 28th June 2021 onwards.

Investment firms classified as Class 2 and Class 3 (subject to exemptions) are supervised under the new regulatory regime for investment firms the Investment Firms Directive (“IFD”) and the Investment Firms Regulation (“IFR”), which came into effect from the 26th June 2021 onwards with the exemption of the Environmental, social and governance risks, which will be applicable from 26th December 2022 as per IFR regime.

Key Points Covered

· Classification of Investment Firms under the new prudential regime.
· Capital Requirements
· K-Factors requirements
· Reporting Requirements
· Disclosure Requirements
· Annual Risk Management Report
· Internal Capital Adequacy Assessment Report and Internal Liquidity Assessment Report
· Recovery Plan

Training objectives

By the end of the seminar, participants will:

· Have better understanding of the changes of the legal framework regarding the new prudential regime for investment firms
· Understand the classification of the Investment firms
· Be aware of the new capital requirements
· Enhance the knowledge in relation to the Own Funds calculations under the new prudential regime for investment firms
· Understand the K-Factors components and the relevant requirement arising from each component
· Identify what data is required for the computation of the Company’s Own Funds requirement under the new prudential regime for investment firms and be able to design a new process for the data extraction
· Get familiarized with the new template under the new prudential regime for investment firms
· Be aware of the reporting requirements arising from the IFR/IFD
· Be aware of the disclosure requirements arising from the IFR/IFD
· Understand how to develop an Annual Risk Management Report
· Understand how to develop an Internal Capital Adequacy Assessment Report and Internal Liquidity Assessment Report
· Understand how to develop a Recovery Plan

Target Audience

The program is ideal for:

· Risk Managers
· Risk Management personnel
· Compliance Officers
· Company Executives from various departments who have been assigned risk management tasks