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Clifford Chance

Clifford Chance


IFR/IFD: The New EU Prudential Regime for Investment Firms

9 December 2019

The EU has adopted a new harmonised prudential regime that will apply to all investment firms authorised in the EU from June 2021. The new Investment Firm Regulation and Directive (IFR/IFD) will treat some firms as (or as if they were) credit institutions and subject them to the same prudential rules as deposit-taking banks, while imposing entirely new and potentially challenging capital, consolidation, reporting, governance and remuneration requirements on other investment firms. Firms need to act now to prepare for the application of the new regime.

For more details on the new remuneration rules under IFR/IFD, please see the briefing on our website here.

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