IFPR Reporting Mandate UK ifpr reporting mandate - IFPR Reporting Mandate UK – A Q&A article

IFPR Reporting Mandate UK – A Q&A article

IFPR Reporting Mandate UK ifpr reporting mandate - IFPR Reporting Mandate UK – A Q&A article

IFPR reporting mandate: What it is

The UK Investment Firm Prudential Regime (IFPR) is a reporting obligation applying to all UK MiFID II Investment Firms. It is set to come into force from the 1st of January 2022. While the final contours of the IFPR regulation are still being finalized — with the Financial Conduct Authority (FCA) just having published its third consultation on the matter — it is evident that investment firms’ reporting obligations will differ based on their prudential category.

Why is the IFPR reporting mandate being introduced?

Simplifying and streamlining the prudential requirements of MiFID investment firms that are regulated in the UK by the FCA is the main goal of this regime. It wants to refocus expectations and prudential requirements away from the risks firms face, towards the potential harm they can pose to the markets and consumers.

Who will be affected by the IFPR?

The IFPR is applicable to:

  • Collective Portfolio Management Investment Firms (CPMIs)
  • MiFID investment firms authorised and regulated by the FCA, and
  • Regulated and unregulated holding companies that contain either of the above

It will not apply to investment firms designated by the Prudential Regulation Authority (PRA). They will continue to remain under the prudential supervision of the PRA.

What does this mean for affected entities?

The IFPR is analogous to the Investment Firms Regulation (IFR) and Investment Firms Directive (IFD) prudential regime that is applicable to EU MiFID firms from the 26th of June 2021. As its enforcement date is set after the EU Exit transition period, UK MiFID firms will comply with the UK-specific prudential regime, IFPR.

What does the future hold?

To develop the IFPR, the FCA is expected to assess responses from the European Banking Authority’s (EBA) Implementing Technical Standards and the industry to its consultation paper, among others.

While MiFID firms in the UK have less than a year to get ready, they can start by recognizing potential impacts this new regime is going to have on their business. This process can be eased to a great extent as there is already a lot of documentation available on the IFD/IFR.

How can firms prepare for this regime?

With a targeted implementation date of 1st Jan 2022, FCA regulated investment firms can follow a few simple steps to get ready for this regime:

  • Determining prudential category
  • Identifying relevant requirements based on the above classification
  • Performing an impact assessment
  • Designing and implementing an action plan

How we can help you

Under the IFD/IFR regime, investment firms in the EU are required to submit reports in the XBRL format. The UK FCA may bring in the XBRL requirement too.

With our extensive experience providing XBRL solutions in the UK — for HMRC, FCA-ESEF reporting requirements — we can assist you with IFPR reporting. If you are a qualifying firm under MiFID II, our SaaS solution can —

  • Integrate with an automated reporting framework
  • Facilitate auto data extraction and XBRL instance generation
  • Provide modularity to incorporate future changes in business rules or taxonomies

For a hassle-free IFPR compliance with IRIS iDEAL®, get in touch.

UKSEF, ESEF, UKSEF taxonomy, ESEF taxonomy

UKSEF, ESEF, UKSEF taxonomy, ESEF taxonomy

UKSEF, ESEF, UKSEF taxonomy, ESEF taxonomy

fca ixbrl - Avoid running into style issues with your FCA iXBRL filings

Avoid running into style issues with your FCA iXBRL filings

Must your FCA iXBRL compliance lead you to a compromise on how your annual report in the xHTML format appears in comparison to the highly attractive PDF document you’ve been presenting all these years? Not really.

However, in our close monitoring of a good number of early iXBRL filings this year, we were surprising to see that in several cases the xHTML versions of annual reports reflect none of the style elements of their well-designed PDF counterparts.

For many years now, companies have been publishing annual reports that are highly stylized and aesthetically pleasing. This is because annual reports serve two purposes. They are both a legal document for regulatory compliance purposes as well as a document that investors and analysts use to track companies’ financials and strategy. The appearance of a document counts to a greater extent when it is used by investors and analysts.

While helping companies prepare documents that comply with the ESEF mandate, several compliance solutions have not been able to effectively retain the stylized elements of a PDF annual report within an xHTML document.

Here’s an example that shows how strikingly different both versions look. In this PDF version of a company’s annual report, you can see that the graphs are attractively designed and placed.

Screenshot of a company’s PDF annual report


However, in the xHTML version of the very same company’s annual report, you would notice that the graphs appear as though they have been stretched horizontally. Some extra graphs and text have also been introduced.

xHTML version of the same company’s annual report


xHTML reports that have design elements missing run aground on two fronts.

Auditors’ dilemma about signing off on documents without the usual design elements

It is the duty of an auditor to provide an opinion about an annual report. In countries where ESEF filings need to be audited, it becomes hard for auditors to provide an opinion when the xHTML file looks completely different from the stylized PDF file. What do the auditors sign off on? Is it on an unattractive xHTML document or an enticing PDF?

An unattractive annual report can put off investors and analysts

When an annual report is unsightly, it may not garner as much attention from investors and analysts as the company desires. The whole idea behind the FCA iXBRL format is to increase the accessibility and comparability of annual reports. An xHTML report that falls short in the aesthetics department defeats that purpose.

To conclude

Running into glitches during a first-time FCA iXBRL filing might be expected. However, issues stemming from a software’s incapability to effectively introduce style elements into an xHTML document are avoidable.

While preparing FCA iXBRL filings, companies must expect a lot more from your compliance software than a mere capability for XBRL tagging.

E-mail us your PDF annual report at  contact@fin-xsolutions.com. We would be happy to show you how your filing would look in xHTML.