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.

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1 Reporting Format – XBRL

2 Investment Firm Classes Under IFR/IFD

Quarterly & Annual 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.

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.

With the right XBRL solution in place, IFR/IFD compliance involves only a seamless connection between firms’ internal data systems and the regulator porta

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.

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.

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.