What is the primary focus of investment firms under the IFPRU regulations?

The primary focus of investment firms under the IFPRU regulations is indeed to operate under the Capital Requirements Directive IV (CRD IV) requirements. IFPRU stands for Investment Firms Prudential Regime, and it specifically establishes the capital and risk management standards that investment firms must adhere to within the UK.

This regime is aimed at ensuring that investment firms maintain adequate capital resources to cover risks they may face, enhancing the overall financial stability of the sector. Under IFPRU, firms are classified based on their size and complexity, with different regulatory capital requirements applied accordingly. This is crucial for protecting clients and maintaining market integrity.

While other options may entail relevant financial activities, they do not align with the specific regulatory framework and focus of IFPRU. For example, providing insurance products, managing retail banking services, or handling real estate transactions fall outside the scope of what IFPRU addresses, which is fundamentally about capital adequacy and risk management for investment operations.