Having sufficient regulatory capital is a key requirement for a firm in order to avoid scrutiny from the regulatory authorities. The calculations involved can be detailed and extremely complex. The changing regulatory landscape has meant that increasingly capital requirements are decided at an international level and legislation from the EU has a direct effect in the UK as it is now increasingly enacted through European regulations.
We are uniquely placed to assist in this area due to the number of people at Duff & Phelps with detailed regulatory and accounting experience who are able to assist clients.
Duff & Phelps provides a broad range of regulatory capital advisory services to all types of investment firms, irrespective of whether they are subject to CRD AIFMD or simply IPRU(INV). Our investment firms’ universe includes full scope, limited activity and limited licence investment firms, exempt CAD and non-MiFID firms that, typically, include investment managers, broker/dealers, investment advisory firms, private equity, MTFs and commodity firms.
Duff & Phelps is able to advise firms on:
- ICAAP, ILAA (in terms of full ILAS as well as non-ILAS firms) both of which include scenario and stress testing
- Start-up capital calculations and projections
- Risk management frameworks
- Assisting with negotiations with the FCA on such things as ICG and Capital Planning Buffer calibration
- Completion and submission of all forms of financial returns to the FCA via GABRIEL
- Completion of COREP forms and assistance in choosing a suitable XBRL solution
- Advice on UK consolidation issues and their determination (including advising on appropriate structural planning impact)
- Advice on the calculation of position risk for equities, debt instruments and commodities
- Advice on the calculation of counterparty exposure for cash and derivative instruments
- Large exposure impact
- Regulatory capital planning
We work closely with many firms on such matters and in their dealings with the FCA, and also directly with the FCA’s relevant policy teams and firms’ supervisors. This places us in a good position to understand the changing FCA expectations. Duff & Phelps also actively participates in consultations directly with the Regulator and/or Europe or via industry bodies where we sit on a number of committees.