As outlined in our previous publication, the new prudential regime for investment firms which comes into force 26 June 2021, encompasses the Investment Firm Regulation (‘IFR’) and Investment Firm Directive (‘IFD’) and allows for a tailored prudential approach based on the business model, risk profile and systemic importance of MiFID firms. This regime will provide a clearer classification of investment firms based on their MiFID regulated activities. Different classes of investment firms will experience different levels of regulatory requirements and supervisory overview tailored to their regulated activities.
To identify which category of Investment Firm you are, we outline the characteristics of each of the different classes of investment firms introduced by the new regime.
Categorisation of investment firms
The categories Investment Firms can be classified are:
Class 1 Firms: Investment Firms, that are categorised as systemically important and are authorised to deal on own a
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