ICARA and Wind-Down Processes
Our experts provide tailored support for Internal Capital Adequacy and Risk Assessments (ICARA) and wind-down obligations.
There are a number of crucial requirements that can be easily missed when preparing an ICARA. We'll help you by developing a bespoke ICARA that meets the requirements set out by the FCA and your specific business needs. We have our finger on the pulse, ensuring that your ICARA will meet the regulators expectations, no matter how recently they may have changed.
The ICARA process
The FCA’s ICARA expectations are continuously evolving. We'll help you to prepare a tailored ICARA by analysing your business model, applying stress testing, implementing a recovery plan and preparing a wind down plan. When working with us, you can rest assured your ICARA covers all of the following requirements:
A clear description of your business model and strategy
An explanation of the activities you carry out and connecting them to the MIFID permissions held and currently used by your firm
An analysis of the effectiveness of your risk management processes and appetite for risk
A detailed overview of the governance structure, linking this to SM&CR
A summary of the material harms your firm faces, and the controls and mitigations in place
An analysis of your capital and liquidity planning
A summary of your compliance with the overall financial adequacy rule
The outcome of stress testing you have conducted and management response to these scenarios
An overview of your wind-down planning, including the financial assessment of winding down your regulated business
The wind-down planning process
As part of the ICARA process, firms must also assess and articulate the steps and means to carry out an orderly wind-down and the termination of their regulated business. This must include:
What is the estimated length of the wind-down period?
What resources (both financial and non-financial) would be needed to implement it?
Who needs to be available to assist the firm in winding-down?
How would the firm deal with redundancies, and which employees need to be retained with special financial arrangements?
What systems (e.g. IT systems) must be available to the firm during the wind-down?
Will the firm need to engage professional advisers to wind-down?
Has the firm considered the implications for any overseas offices and branches?
Having supported many firms with the implementation of such a plan in the past, our team will ensure that your wind-down plan addresses the FCA's expectations, while being unique to your firm.
Why work with us?
Regulatory reporting can be complex. Appointing us as your dedicated partner can reduce the burden and help you focus more time back into your business.
Ahead of the curve
The regulatory landscape is constantly evolving. Our team stay informed of regulatory updates, ensuring that your reports will meet the latest regulatory standards.
Jurisdictional reporting
Our experienced team know the regulatory environment inside and out. We can accommodate your UK, US, and EU reporting requirements as required.
Relationship-led approach
We get to know your business and understand your team, helping us to work through and process your data appropriately for the reporting requirements.
There when you need us
You'll benefit from a dedicated support team that are focused on your priorities. Whether submitting once, or multiple times a year, our experts will work to your deadlines, acting in a responsive and efficient manner.