IFR/IFD Prudential Reporting Mandate
The Investment Firms Regulation & Directive (IFR/IFD) prudential regime came into existence in 2021, requiring the compliance of EU investment firms under MiFID II. IRIS iDEAL®, another well established IRIS product, has been helping EU investment firms with high-quality and high-volume reporting.
IFR/IFD Prudential Mandate
A Closer Look
The Investment Firms Regulation and Directive (IFR/IFD) prudential regime began to apply to investment firms in the EU from June 2021. The new regime covers investment firms functioning under the Markets in Financial Instruments Directive II (MiFID II) and revises capital composition, liquidity, governance, remuneration, and supervision requirements for the firms based on the ‘Class’ or category to which they belong.
Until June 2021, all EU investment firms were subject to CRD IV/CRR requirements. However, since the Capital Requirements Directive (CRD) and Capital Requirements Regulation (CRR) were primarily designed to cover credit institutions like banks, they were thought to only partially cover the risks associated with investment firm services. Hence, the need for a new prudential regime.
Systemically important investment firms – which are categorized as Class 1, 1a, and 1b firms – will continue to comply with the existing CRD IV/CRR requirements. They have been placed in the same class as deposit-taking credit institutions. ‘Non-systemic’ investment firms categorized under Class 2 and Class 3 will have to comply with new IFR/IFD reporting requirements.
Better Regulation
Data in the XBRL format makes it easy for market regulators or central banks to oversee financial transactions and operations and identify systemic risks if any.
Seamless Compliance
With the right XBRL solution in place, IFR/IFD compliance involves only a seamless connection between firms’ internal data systems and the regulator porta
High-quality Data
Data in XBRL is less prone to errors and of better quality than that in non-interactive formats. No wonder it is the preferred data collection format for regulators around the world.
Towards Analytics
Large volumes of digital data collected from banks or investment firms can be pooled to drive analytics that allows regulatory agencies to study trends for better decision-making.
To comply with the IFR/IFD regime, investment firms need to assess the classification applicable to them – whether they belong under Class 2 or 3. They also need to evaluate the reporting obligations specific to their class, ensure processes and controls are in place to capture the necessary data, and convert the same into XBRL.
Under IFR/IFD, the reporting obligation for Class 2 firms is quarterly, while that for Class 3 firms is annual. To comply with the IFR/IFD regime, firms need to use software that integrates with automated reporting frameworks, facilitates data extraction and XBRL instance generation, and provides modularity to incorporate future changes in business rules or taxonomies.
1 Reporting Format – XBRL
2 Investment Firm Classes Under IFR/IFD
Quarterly & Annual Reporting
IRIS iDEAL® for IFR/IFD Reporting
IRIS iDEAL® is a state-of-the-art regulatory compliance software for IFR/IFD reporting. It acts as a bridge between an organization’s internal data systems and the regulator’s filing platform. It facilitates automated scheduling of XBRL document creation and submission through one-time mapping of internal reportable data to taxonomy elements.
Why IRIS iDEAL®?
Diverse Growing Clientele
IRIS iDEAL® has been the preferred resolution and prudential reporting tool for over 50 banks, credit institutions, and investment firms worldwide for more than a decade now.Comprehensive Experience
Our team of over 350 XBRL experts has 17+ years of experience in XBRL-based regulatory compliance, having facilitated more than 5 million regulatory filings around the world.Unparalleled Quality
We at IRIS take pride in our consistent #1 ranking for XBRL quality in independent third-party assessments. Our ranking underlines a resolve to deliver high-quality compliance.Superior Data Security
IRIS iDEAL® comes with top-notch data security features that are designed to keep your unpublished financial and operational data safe from unauthorized access.Some of Our Top Clients
Unparalleled XBRL Expertise at your Service
We have been in the XBRL-based compliance reporting space for over 17 years. We take pride in having contributed to developing the XBRL format and love to describe ourselves as XBRL evangelists. As part of our work with over 30 global regulators, we have even built a few XBRL taxonomies.
Apart from IFR/IFD prudential reporting, we help companies with ESEF/UKSEF iXBRL reporting in the EU and UK. In the US, we facilitate iXBRL reporting with the SEC and XBRL reporting with the energy regulator FERC. We also help South African companies comply with the CIPC’s iXBRL mandate.
- Outsourcing & In-house Compliance
- Unlimited XBRL Expert Support
- Scalable Solution for Newer Filing Needs
- Constant Focus on High-quality Filings
Our Stellar Success
Our Stellar Success
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