Regulatory Change Implementation
Complying with upcoming regulation.
SERVICESService Overview
- What is the
client issue? -
Regulators across jurisdictions have been ever more active in trying to keep up with industry innovation and mandating regulation to protect the orderly functioning of markets and protect investors. Businesses and compliance departments are focused on protecting the business on a day to day basis and typically do not have the spare resources and expertise to dedicate to implementing new rules into existing policies and procedures.
- How does
Optima help? -
Optima has dedicated in-house Directors and Partners who are focused on regulatory horizon scanning and conducting in depth analysis of new regulations that will impact our clients. Whilst our teams are all compliance generalists, we simultaneously operate vertical teams of experts for dedicated regulatory areas, such as prudential, MiFID, AIFMD, US filings, data privacy, NFA etc. Each of the vertical experts are also members of industry groups to keep abreast of regulatory changes and industry feedback.
We have assisted nearly all of our clients with any new regulations that they had to implement.
New European prudential regime
One of Optima’s clients is a large corporate finance and private equity advisory firm which is currently classified as exempt-CAD under the European and FCA regime, meaning that it is not subject to the European Capital Requirements Directive and the more onerous prudential rules.
With the implementation of the new European prudential regime, the client had to update its current processes and capital calculations to comply with the FCA’s UK Investment Firm Prudential Regime (IFPR) which is coming into force in 2022. Whilst the rules are not yet in force, the client wanted to complete a full impact analysis and model out the effects of the changes on its capital position, as well as internal operations.
Optima assisted the client by executing the following project plan:
- Review of the client’s existing capital position and financial statements
- Mapping of the client’s business activities to the IFPR and modelling out the new capital calculations and impact on the client’s capital position
- Analysis of the client’s remuneration structures and modelling out the impact of the new remuneration requirements to specific individuals and overall senior management team
- Provision of practical advice and solutions to comply with the upcoming IFPR, including business restructuring options
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