A Focus on ICARA & the IFPR Process - A Step by Step Guide for Asset Managers

Introduction

This introductory level virtual classroom session will focus on the ICARA process within the ‘Investment Firms Prudential Regime’ (IFPR).

As FCA regulated entities continue to manage the implementation of the ‘Investment Firm Prudential Regime’ (IFPR), a significant challenge they are facing is the preparation of the ‘Internal Capital Adequacy and Risk Assessment’ (ICARA) document. The key steps in the ICARA process relating to:

• Identification and monitoring of harms
• Undertaking harm mitigation taking into account your business model, systems and controls
• Planning and forecasting along with severe but plausible stress testing scenarios
• Planning recovery actions and an orderly wind-down

The important change is the assessment of the ‘Overall Financial Adequacy Rule’ (OFAR), the calculation of the ‘own funds threshold requirement’ and the calculation of the ‘liquid assets threshold requirement’. The step by step process of undertaking the OFAR assessment is complex but essential. This session will focus on the practical aspects of the ICARA process.

What You Will Learn

This live and interactive course will cover the following:

• Quick summary on the IFPR
• Key components of the ICARA
• How does the ICARA differ to an ICAAP?
• The ‘Overall Financial Adequacy Rule’
• Liquidity Regime under the IFPR
• Wind down planning requirement under the IFPR
• The triggers and notifications
• MIF007 - ICARA questionnaire

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.