Prudential Capital Requirements with Monte Carlo Plus

Dr Mustafa Cavus, from Monte Carlo Plus, will review the FCA business plan for firms, looking at its focus on consumer protection and its possible impacts on firms, customers and the UK market as a whole.

In June 2020 the FCA published two very important pieces of documentation, for both investment and brokerage firms: (1) the final guidance on capital – FG20/1 assessing adequate financial resources and (2) the discussion paper DP 20/2 to consult on its proposed approach to the new prudential regime for investment firms (Investment Firm Directive IFD/IFR) implementation. Both represent significant changes of requirements for capital (e.g. the introduction of the K-factors to capture risks to firms, to clients/customers, and markets), liquidity, concentration and disclosure. Though these two FCA publications’ focus and content are not overlapping their massage and requirements for the firms is consistent with the FCA’s business plans for the firms and FCA’s change in vision for the functioning of the UK markets. We think there are clear benefits and advantages to understand those significant changes early on and adapt rather than wait.

This is part of a series of round tables in conjunction with Monte Carlo Plus. If you would like to attend this video conference, or any others in the series please email: events@thebrokerclub.org