HFM Operational Leaders' Summit

16 September 2021

Wow, what a fantastic two days we have had! As the first large scale face to face event that we have attended, HFM's Operational Leaders' Summit was a perfect welcome back. The hedge fund sector's C-suite execs were out in full force, with over 200 firms represented and the packed agenda covered all bases, from ESG, Brexit, Covid, investment trends and of course regulation. Our team were on hand to lead some roundtable discussions focused on the imminent Investment Firms' Prudential Regime (IFPR), where we sparked some very lively debates.

It seems the views of the roundtable participants were broadly in line with the wider market. We ran a recent market poll and the results matched closely to those in the room. Particularly around how prepared firms felt and where their biggest concerns lay.

1. How would you describe your firm's IFPR-readiness?

How ready are you

2. Which area(s) of IFPR give you most cause for concern?

IFPR Concerns

The ICARA process is the biggest cause for concern, with some switching from the current ICAAP process and others starting from scratch with the whole risk assessment process.

The group consolidation rules were also cause for concern, increased frequency and complexity of regulatory reporting also ranked.

For some firms, a large increase in capital requirements was an understandable concern and others saw the new RemCode, remuneration rules causing issues.

3. Are you concerned about the personal liability connection between IFPR and SMCR?

Are you concerned about SMCR and IFPR

When asked if anyone was concerned about IFPR in relation to the SMCR and personal liability when it came to implementation and compliance, they results were quite polarised. Some said they were somewhat concerned and some not at all concerned.

We outlined the results of our Impact Assessment Insights & Findings report and again, saw the same trends from those in the room.

Day two saw the team enjoying the rest of the agenda and chatting to contacts old and new. All in all, an excellent event and a welcome change from the online meetings we have all become used to. Thanks HFM!

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