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Prudential

Prudential regulation is becoming more complex, driven by an ever-increasing focus on prudential matters as well as growing supervisory scrutiny and expectation around sophistication. Firms must meet both PRA expectations on safety and soundness and the FCA’s increasing focus on financial resilience and harm mitigation. We help firms cut through this complexity, providing clear, practical support across capital, liquidity and financial resilience requirements under BAU, stressed and wind-down scenarios.

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How we work with clients

We help firms design and implement robust prudential frameworks that stand up to regulatory scrutiny and stress scenarios. Our team combines deep technical knowledge, including time within the FSA / PRA’s Prudential Policy department, with hands-on delivery experience across ICAAP, ILAAP and ICARA. We also work closely with our Insolvency team to ensure the robustness of clients' Wind-down Plan arrangements. We typically provide the following prudential support to our clients:

ICAAP, ILAAP and ICARA

We support the full lifecycle of firm prudential assessments, including quantitative and quality assessment of financial resources, as well as regulatory challenge. Our specialists provide clear, proportionate and regulator-ready ICAAP, ILAAP and ICARA documents, underpinned by robust risk identification, stress testing and capital / liquidity adequacy assessments. We also act as independent reviewers to challenge existing assessments ahead of submission or supervisory review.

Recovery planning

We assist firms with recovery plans that are operationally credible, including the identification of severe but plausible stress scenarios, defining actionable recovery options, and ensuring governance, escalation and MI frameworks are fit for purpose. Our approach ensures firms can demonstrate resilience and a credible path through stress to recovery.

Wind-down planning

In conjunction with our Insolvency team, who advise on the legal, operational and commercial aspects of solvent exit, we develop wind-down plans that are practical, costed and can be readily executed. From wind-down triggers and funding to operational dependencies and client asset considerations, we ensure firms can evidence an orderly exit that minimises harm to clients and markets—aligned with FCA expectations.

Regulatory reporting

We support firms in preparing and reviewing regulatory returns, ensuring data integrity, consistency with underlying financial records, and compliance with prudential rules. We also advise on consolidation approaches, helping firms navigate complex group structures and prudential reporting obligations with confidence.

Group structuring considerations

We provide strategic advice on structuring and restructuring, including the formation and ongoing management of Investment Firm Groups. Whether in a transaction context or BAU, we help firms assess prudential consolidation impacts, capital / liquidity optimisation, and regulatory implications—ensuring structures are both compliant and commercially effective.

Supervisory readiness

We prepare firms for regulatory scrutiny, including SREP assessments, thematic reviews and ad hoc supervisory engagement on prudential matters. Our support includes mock reviews, documentation uplift, governance enhancements and response strategies—ensuring firms can evidence control, clarity and credibility to supervisors.

Board and ExCo training

We deliver tailored training to Boards and Executive Committees, translating complex prudential requirements into clear, actionable insights. Our sessions focus on accountability, challenge and decision-making, equipping Senior Management to engage confidently with regulators and discharge their responsibilities effectively.

Regulatory change

We help firms interpret and implement prudential regulatory change, including Basel 3.1 reforms and evolving UK prudential requirements, including under IFPR. From impact assessments and gap analyses to planning and delivery, we ensure firms remain compliant while optimising capital and liquidity.

Due diligence and assurance

We provide prudential-focused due diligence and assurance reviews, assessing capital and liquidity adequacy, risk frameworks and financial resilience. Our work supports transactions, investments and internal governance, offering clear, evidence-based insights into prudential strength and potential vulnerabilities in the business model.

Distressed scenarios

When firms come under stress, we provide practical, experienced support. From stabilisation and recovery planning to wind-down execution, we work alongside Senior Management to navigate complex regulatory expectations, engage with supervisors and deliver controlled outcomes.

Our experience

Below is a snapshot of our recent prudential work:

Why DWF?

The team includes individuals with experience of working within the prudential functions of the UK regulators, with expertise across UK CRR, MIFIDPRU and broader FCA prudential frameworks, focused on delivering balanced outcomes of proportionality and alignment with regulatory expectations. The team is also able to draw upon the expertise and knowledge of our Finance & Restructuring Insolvency team to ensure that operational aspects of wind-down and resolution plans are operationally credible and able to withstand scrutiny under stress.

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Get in touch today

Get in touch with a member of our team by using the details below or completing the form.
T +44 333 320 2220
F
+44 333 320 4440

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