Provisions of IFR/IFD for EU Investment firms

By the end of the seminar participants will be able to:

• Describe the purpose and key provisions of the IFR & IFD framework
  
• Classify investment firms into Class 1, Class 2 and Class 3 and distinguish the level at which the prudential rules apply to each of the three classes
• Correlate specific concepts and methodologies with the IFR & IFD framework
• Apply the IFR & IFD rules and methodologies to their own capital adequacy calculations
• Explain the impact of specific transactions on their organisation’s capital and liquidity calculations
• Encourage the management and staff of their organisation to properly implement the IFR & IFD methodologies and comply with the relevant requirements
• Support the key functions within their organisation to cope with the obligations arising from the IFR & IFD framework.

Officers serving in a number of functions within regulated investment firms including directors, general managers, CEOs, CFOs, heads of risk management functions and risk officers, accounting and finance officers, heads of compliance functions and compliance officers, heads of internal audit functions and internal audit officers, officers involved in regulatory reporting, officers involved in proprietary trading functions and information systems officers. 

All participants should be currently employed.

*The number of participants is restricted to 28.
 

1. Introduction (15 min)

• Background
• Dates and scope of application
• Initial capital

2. Capital Adequacy Ratio & Own Funds (30 min)

• Minimum thresholds for CAD Ratio (Capital Adequacy Ratio)
• Own funds calculation

3. Minimum Capital requirements (15 min)

• Fixed overheads requirement
• Permanent minimum capital requirement
• K‐Factor Requirement

4. Breaking down the K‐Factor requirement (3 hrs)

• Risk‐to‐Client (RtC) K‐factors
• Risk‐to‐Market (RtM) K‐factors
• Risk‐to‐Firm (RtF) K‐factors

During this session we will analytically explain the methodologies that the IFR establishes for measuring the minimum capital requirements of investment firms across a number of risk metrics, which are called k-factors and are intended to reflect the various risks arising from the business of an investment firm, according to the activities it carries out. There are various k-factors under each of the three broad risk categories of Risk-to-Client, -Market and -Firm, and for each such k-factor a different methodology applies.

5. Concentration Risk (15 min)

• Limits
• Exposure value excess and K-CON (Concentration risk)
• Exclusions

6. Liquidity requirement (15 min)

• Liquid assets threshold
• Liquid assets definition

7. Important Exemptions (30 min)

• Transitional provisions
• Group Capital test

During this session we will explain the provisions of the IFR which allow for gradual implementation of specified IFR methodologies during a transitional period of 5 years after initial IFR application, i.e. until 26 June 2026, with an aim to support the investment firm sector in adjusting to the new requirements without becoming insolvent.

We will also discuss the cases in which, an investment firm that belongs to a group which, based on the IFR/IFD provisions, is subject to prudential consolidation, can be permitted to follow simpler prudential consolidation requirements where certain conditions apply.

8. Disclosure, reporting and risk management arrangements (1 hr)

• Reporting obligations
• Disclosure requirements
• Risk management arrangements.

Our services include:

• Handouts, including the hard copy presentation, examples, case studies, exercises, and additional notes, if applicable.
• Stationery, such as pads, pens, and files.
• Drinks (coffee, tea, etc.) and a buffet lunch.
• A fully equipped training room with WiFi access.
• Certificate of completion.

If you wish to register for the seminar, please complete the registration form.

Once your registration is submitted, you will receive an email stating the participation fee, including any discounts, if applicable. Kindly note that the payment should be settled at least two days prior to the seminar’s date for your registration to be confirmed.

The programme has been approved by the HRDA. Enterprises participating with their employees who satisfy HRDA’s criteria, are entitled to subsidy. Please note that there are limited seats available, therefore enroll in this seminar as soon as possible.

If you do not receive our confirmation e-mail regarding your registration, your participation cannot be guaranteed.
 

Cost

€270 Net investment after subsidy from the HRDA of €120: €150 for all eligible participants.*

€270 + VAT (19%) for all participants who are non-eligible for the HRDA subsidy.

*Last Date for 10% Early Bird Discount: 11/11/2024

Note

We do not provide a soft copy of the presentation for face-to-face seminars. However, if you would like to request one, please contact us. We may be able to provide it, subject to approval. In this case, the cost of the soft copy will be €50 for participants who have already attended the relevant training, or €100 for those who have not.
 

HRDA Note

For HRDA approved trainings, all individuals who wish to attend our training courses should not only fill out our registration form, but also complete the registration process through the ERMIS platform in order to be approved by the HRDA. Please reach out to the HRDA Ermis officers on 22 390 300 for more details regarding this process. Kindly also note that each participant regardless if they are claiming the HRDA subsidy or not, will need to complete their registration through ERMIS as a physical person and choose our training in order to be able to attend (either as an employee whose company is claiming the subsidy or as an individual not claiming the subsidy).
 

Discounts available

• For more than two (3+) participants from the same company a 10% discount is available on the total cost, before the VAT and HRDA subsidy. This discount only applies for participants who enroll in the same seminar, on the same day. This discount can only be combined with the early bird discount and the HRDA subsidy, when applicable.
• For individuals/legal entities who/which register in more than two (3+) seminars during the same semester (January-June & July-December), a 10% discount is available on the total cost, before the VAT and HRDA subsidy. This discount only applies for individuals/legal entities who/which enroll in more than two (3+) seminars during the same semester, on the same day. This discount can only be combined with the early bird discount and the HRDA subsidy, when applicable.
• There is a 10% discount for alumni members. This discount should be applied before the VAT and HRDA subsidy and can only be combined with the early bird discount and the HRDA subsidy, when applicable. For more information on our alumni scheme, click here.
• There is a 10% early bird discount on selected seminars for participants who enroll in a training course until a specific date which is stated above. This discount should be applied before the VAT and HRDA subsidy and can only be combined with the HRDA subsidy, when applicable.
• HRDA subsidy for all HRDA approved seminars. 
• Please note that while participants may qualify for multiple discounts, a maximum of two discounts, up to a total of 20%, can be applied per registration.

Contact

For any queries, please contact Vasiliki Sioziou on +357 22 207 460 or at academy@kpmg.com.cy

CPD

This seminar may contribute to Continuing Professional Development requirements. At the end of the seminar participants will be given a certificate of attendance confirming the total number of training hours (6 CPD).

Artemis Hadjivarnava
Principal, Capital Adequacy Lead, Risk Consulting, KPMG in Cyprus

Artemis is a Principal in the Risk Consulting department of KPMG in Cyprus, with more than 15 years of experience in the financial services advisory field. She heads the Capital Adequacy consulting team and has extensive experience in the implementation of various assurance and advisory engagements in relation to Capital Adequacy (IFR/IFD, Basel III & IV, CRR/CRD) Calculations and Impact Studies, Capital Adequacy seminars, Consolidated Supervision, ICAAPs, Pillar 3 Disclosures, Operational Risk Management Frameworks, Client Assets, Internal Controls and overall Regulatory Compliance in banks and investment firms.

Artemis has extensive experience in the design and implementation of ICAAPs and has been actively involved in capital planning, stress testing and Pillar 2 capital allocation exercises, as well as in the identification and assessment of risks in the financial services industry. Since the implementation of the IFR & IFD prudential framework, she has also been extensively involved in the design and implementation of the ICARA process for investment firms, and in the drafting of their ICARA Reports.

Furthermore, Artemis has supported the Cyprus Securities and Exchange Commission (“CySEC”) with the adjustment of the IFR CoRep templates, while she has also had an active role in the development of guidelines for CySEC on consolidated supervision, in the transposition of the European Council’s CRD 2 and CRD 3 provisions into CySEC’s Directives DI144-2007-05 and DI144-2007-06 for the Capital Requirements of Investment Firms and for the Large Exposures of Cyprus Investment Firms, respectively, and in developing guidelines for the proper handling and protection of client funds and financial instruments.

In 2015, she was certified by the HRDA as a “Trainer of Vocational Training”.