Investment firms: new prudential standards

The Regulation (IFR) and Directive (IFD) on the prudential requirements of investment firms published on 4 December 2019 will come into application on 26 June 2021, by which time the directive must be transposed into French law.

The IFR and IFD identify three types of investment firms. Class 1 firms are considered to be systemically important and must have credit institution status, while Class 2 and Class 3 firms will be subject to a new prudential regime based on specific metrics, or K-Factors, for each activity.

AMAFI is working hard alongside the French Treasury and the prudential oversight and resolution authority (ACPR) to draft the transposition legislation and assist members as they implement the new regime. In the case of Class 1 firms, this particularly involves examining the consequences of their status change, while other firms need support to switch from the old framework to the new standards.