Training Objectives

The aim of this programme is to:

• Provide participants with a deep understanding of the prudential regulatory framework applicable to investment firms under IFR, IFD, and Law 165(I)/2021
• Develop further understanding on the applicable EBA and ESMA Guidelines as well as CySEC Circulars applicable to investment firms
• Enable correct classification of investment firms and interpretation of their corresponding capital, liquidity, and reporting obligations
• Equip professionals with the tools to implement and maintain the Internal Capital Adequacy and Risk Assessment (ICARA) process, including stress testing, forward-looking capital planning, and wind-down strategies
• Clarify governance expectations, internal control systems, and remuneration policies in line with CySEC and EBA guidelines
• Explain the regulatory forms and reporting procedures required under CySEC supervision, including common supervisory priorities and findings
• Introduce emerging regulatory topics, including DORA, MiCA, ESG risk management, and ICT governance, to ensure proactive compliance and operational resilience

Training Outline

Legal & Regulatory Framework

• Introduction to IFR/IFD and Law 165(I)/2021
• EBA Roadmap and implementation phases (2020–2025)
• Regulatory interaction with CRD, BRRD, MiFID/MiFIR, AIFMD, UCITS, MiCA, DORA etc.

Classification of Investment Firms

• Class 1A, 1B, 2, and 3 firms: thresholds and requirements
• Decision tree scenarios and classification practices
• Implications for regulatory obligations

Prudential Requirements and Capital Framework

• Initial capital requirements
• K-Factors methodology
• Fixed Overheads Requirement (FOR)
• Own Funds composition and deduction items

Governance and Internal Control Requirements

• Role of the Board and Senior Management in ICARA
• Responsibilities of Risk, Compliance, and Finance functions
• Remuneration governance and material risk takers
• Internal policies and control frameworks

Risk Management and Risk Appetite Framework

• Quantitative & qualitative indicators
• Risk capacity vs. tolerance
• Conduct, market, operational, AML, and cyber risks

 ICARA – Internal Capital Adequacy & Risk Assessment

• Legal foundations under Chapter 2 of Law 165(I)/2021
• Key principles: harm identification, wind-down, stress testing
• ICARA building blocks: planning, governance, risk assessment, projections
• Capital and Liquidity allocation and Stress Testing Scenarios
• Pillar 2 Probability vs Impact model
• Wind-down planning
• Form 165-03: regulatory submission and expectations

Emerging Regulatory Topics

• Digital Operational Resilience Act (DORA) implementation
• MiCA (Markets in Crypto-Assets Regulation): notifications and classification
• ESG disclosures, diversity benchmarking, gender pay gap reporting
• Outsourcing, ICT risk management, and group capital test under Article 8 IFR
• EBA’s & ESMA’s proposed changes to the IFR

Who Should Attend

This programme is designed for professionals within the financial services sector and will be particularly beneficial to:

• Risk Managers
• Compliance Officers
• Internal Auditors
• CFOs
• Directors
• Other risk takers of Investment Firms

Training Style 

The programme is designed to provide participants with a comprehensive understanding of the prudential requirements and risk-management framework applicable to EU investment firms under the IFR/IFD and Law 165(I)/2021. The training combines regulatory interpretation with practical application, ensuring participants gain both conceptual clarity and operational insight.

The seminar will dedicate significant time to analysing the full suite of risk-assessment approaches and risk-management tools that firms should apply when meeting their regulatory obligations.

Throughout the seminar, participants will work through the full prudential lifecycle—from the legal and regulatory foundations, through firm classification and capital requirements, to governance, internal controls, and risk-management expectations. Significant emphasis will be placed on the K-Factors methodology, Own Funds composition, the Fixed Overheads Requirement (FOR), and the governance obligations placed on Boards, Senior Management, and control functions. This includes methodologies for identifying and assessing all material risks, performing K-factor and capital-adequacy evaluations, managing liquidity and concentration risks, implementing robust operational-risk frameworks, and integrating stress-testing, scenario analysis, and recovery planning into the firm’s governance processes. The programme delivers  the methodologies of the ICARA, while also addressing the wider prudential risk-management framework that investment firms must operate under.

The programme also provides a structured, step-by-step exploration of the ICARA process, including harm identification, stress testing, capital and liquidity planning, wind-down analysis, and the preparation of the regulatory Form 165-03. Participants will examine quantitative and qualitative risk indicators, risk appetite design, and the management of key prudential risks—conduct, market, operational, liquidity, concentration, AML, ICT, and cyber.

In addition, the seminar incorporates discussion of emerging regulatory developments such as DORA, MiCA, ESG-related disclosures, outsourcing and ICT-risk expectations, and proposed amendments to the IFR. Through case studies, examples, and scenario-based exercises, attendees will gain practical exposure to the tools, methodologies, and supervisory expectations required to maintain a robust, forward-looking prudential risk-management framework.

CPD Recognition

This programme may be approved for up to 5 CPD units in Financial Regulation and Risk. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.

This training course may be approved as an external activity under the  new  ACAMS  recertification  category  ”non-ACAMS credits” for up to 5 CPD units. Eligibility criteria and CPD Units are verified directly by the Association of Anti-Money Laundering Specialists (ACAMS). To read more about the non-ACAMS credits policies and eligibility criteria please click here.

In-house Training

For groups within the same organisation, this course may be customized to meet any specific needs and delivered in-house.