Regulatory Alerts2020-10-05
Added · Updated
Q&A: ICAAP and ILAAP requirements for small and non-interconnected investment firms
The Internal Capital and Liquidity Adequacy Assessment Process (ICAAP and ILAAP) becomes mandatory for all small and non-interconnected investment firms under the IFR, excluding those providing only order reception/passing or investment advice. Investment firms must ensure these processes are appropriate and proportionate to the nature, scale, and complexity of their activities. This requirement applies to firms not qualifying as small and non-interconnected under Article 24(1) of the IFD, with the regulator retaining the power to extend the obligation to smaller firms under Article 24(2).
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