What does IFPRU regulation pertain to specifically?

IFPRU regulation, or the Investment Firms Prudential Regime, specifically applies to investment firms that fall under the Capital Requirements Directive IV (CRD IV) framework. This regulation was developed to ensure that these firms maintain adequate capital levels and risk management practices in line with the requirements set out in CRD IV.

This regime is crucial for the stability and integrity of the financial system, as it helps to mitigate risks associated with investment activities and ensures that firms are well-capitalized to withstand financial pressures. The inclusion of investment firms under this regulation reflects the unique characteristics and risk profiles of these entities as compared to other sectors such as insurance firms, retail banks, or publicly traded corporations, which are governed by different sets of regulations and frameworks.