10.4 Recommendations to better align the prudential regulatory response with the actual risk profile of investment firms

508. Although the IFR and IFD are a good first step in establishing a prudential regime that captures the actual risk profiles of investment firms, the new regime still contains several shortcomings. The following sections will discuss how the IFD and IFR regimes can be amended to fully capture the actual risk profiles of investment firms. The proposed amendments will be formulated along the lines of the review clause of Article 60 of the IFR, which tasks the European Commission with drafting a review report on 16 aspects of the IFR and IFD regime that, in essence, covers all aspects of the IFR and IFD regime.