One year on from a change in regulation, our annual Risk and ICARA industry benchmarking survey, ‘Managing Harm and the Impact on Financial Resilience’, shows the impact of regulatory change on financial resources of investment firms is mixed.
2022 saw the implementation of the Investment Firms Prudential Regime (“IFPR”). Under the new regime, 52% of firms have seen an increase in their overall capital requirement. However, some firms have seen significant benefits from the flexibility the new regime introduces for capital assessments.
All firms are in scope of wind-down planning and for many investment managers (61%) their regulatory liquidity requirements are driven by the cost to wind-down. With significant FCA scrutiny on these assessments, we expect continued focus on these plans going into 2023.
In a year of uncertainty, investment managers have highlighted market turbulence and recessionary forces, regulatory change and ESG as their most impactful areas of risk beyond 2022. In light of this, 79% of firms have said ESG and Sustainability are a high demand skillset for Risk functions going into 2023.
Download our findings here.
