The FCA has converted the near-final rules from its first two policy statements on IFPR into final rules, which are set out in the legal instruments FCA 2021/38 and FCA 2021/39. The FCA will publish a third policy statement by the end of 2021 following its third and final consultation in the summer.
Alongside the final rules, the FCA has also published:
- an updated version of its guidance on the application of ex-post risk adjustment to variable remuneration, which brings FCA investment firms into scope;
- a Remuneration Policy Statement template, which FCA investment firms can use to document their remuneration policies; and
- a template table of material risk takers (MRTs), which FCA investment firms can use to record their MRTs.
The FCA will be sending out a questionnaire to all existing FCA investment firms in November asking for various key information, eg their expected SNI status, investment firm group membership/ composition and expected ICARA reporting date.
The new regime comes into force on 1 January 2022.