Our services

IFR

Under Regulation (EU) 2019/2033 (IFR), investment firms are required to calculate and report quarterly prudential information to the competent authority in accordance with Articles 54 and 55 IFR and the applicable Implementing Technical Standards (ITS) on supervisory reporting.

Quarterly submissions require accurate calculation and reconciliation of:

• Own funds
• Fixed Overheads Requirement
• K-factor requirements, including K-AUM, K-CMH, K-ASA, K-COH, K-NPR, K-DTF, K-CON
• Concentration risk
• Liquidity requirements
• Group capital test or consolidation reporting, where applicable

We support firms in the preparation, validation and submission of quarterly returns, including:

• Capital eligibility assessments and own funds composition analysis
• K-factor data aggregation and methodology review
• Cross-checks against accounting records and management reports
• Reconciliation with ICARA outcomes and Pillar III disclosures
• XBRL template validation in line with the applicable ITS

Our approach ensures that quarterly reporting is technically accurate, internally consistent and aligned with supervisory expectations, reducing the risk of reporting deficiencies or follow-up queries from the competent authority.

Pillar III Disclosures

Investment firms are required to publish prudential disclosures in accordance with Regulation (EU) 2019/2033 (IFR) and Directive (EU) 2019/2034 (IFD), forming part of the market discipline framework applicable to investment firms.
The Pillar III Disclosure and Market Discipline Report provides transparency on a firm’s risk profile, governance arrangements, own funds composition, capital requirements, remuneration policies and risk management framework.
We support firms in the preparation and review of Pillar III disclosures, ensuring alignment with:

• Own funds requirements
• K-factor requirements
• Concentration risk and liquidity requirements
• Governance and risk management disclosures
• Remuneration policy disclosures
• Environmental, social and governance (ESG) risk disclosures where applicable

Our approach ensures consistency between Pillar III disclosures, ICARA documentation, supervisory reporting and audited financial statements. We provide structured drafting, data validation and internal cross-referencing to ensure that published disclosures are technically accurate, internally coherent and capable of withstanding supervisory and market scrutiny.

ICARA / ICAAP / ILAAP

Under Directive (EU) 2019/2034 (IFD), investment firms are required to establish and maintain an effective Internal Capital and Risk Assessment (ICARA) process. ICARA forms the core of the prudential governance framework and requires firms to assess, on an ongoing basis, the risks they face, the potential harm they may pose to clients and markets, and the adequacy of their own funds and liquid assets.

The ICARA process extends beyond regulatory capital calculations. It requires structured identification, measurement and monitoring of:

• Risk-to-firm and risk-of-harm exposures
• Capital adequacy under the IFR framework
• Liquidity adequacy and wind-down planning
• Stress testing and forward-looking capital projections
• Governance oversight and risk management effectiveness

We support firms in the design, enhancement and documentation of their ICARA framework, including:

• Risk identification and materiality assessments
• Capital and liquidity adequacy assessments
• Stress testing methodologies and scenario analysis
• Wind-down planning and viability analysis
• Preparation of ICARA documentation and board reporting
• Alignment with supervisory reporting and Pillar III disclosures

Our approach ensures that the ICARA is not treated as a standalone document, but as an integrated prudential process embedded within governance, capital planning and supervisory dialogue.

ICAAP / ILAAP / Stress tests

While ICARA applies specifically to investment firms under the IFD framework, certain entities — including consolidated groups and firms subject to parallel prudential requirements — may be required to maintain an Internal Capital Adequacy Assessment Process (ICAAP).

ICAAP and stress testing frameworks require firms to assess the adequacy of their capital resources under both normal and stressed conditions, taking into account their risk profile, business model and forward-looking strategy.

We support firms in:

• Identification and quantification of material risks
• Capital adequacy assessments under base and stressed scenarios
• Development of stress testing methodologies and assumptions
• Reverse stress testing and vulnerability analysis
• Multi-year capital projections aligned with business planning
• Documentation suitable for supervisory review and SREP dialogue

Our approach ensures that stress testing is not treated as a mechanical exercise, but as an integrated risk management tool informing capital planning, governance oversight and strategic decision-making.

We assist firms in aligning ICAAP outputs with prudential reporting, Pillar III disclosures and internal risk appetite frameworks to ensure coherence across regulatory and supervisory deliverables.