CP13/6 - CRD IV for Investment Firms - Financial Conduct Authority

FCA 2013/xx
basis.
8.2.13 G In deciding whether a transaction is at arm's length, the following factors
should be taken into account:
(1) the extent to which the person to whom the firm has an exposure ('A')
can influence the firm's operations through, for example, the exercise
of voting rights;
(2) the management role of A where A is also a director of the firm; and
(3) whether the exposure would be subject to the firm's usual monitoring
and recovery procedures if repayment difficulties emerged.
9 Capital buffers
9.1 Application
9.1.1 R IFPRU 9 applies to an IFPRU investment firm, unless it is one of the
following:
Purpose
(1) an IFPRU limited licence firm; or
(2) an exempt IFPRU commodities firm.
9.1.2 G This chapter implements articles 129 (part), 130 (part), 140 (part), 141, 142
(part) of CRD.
9.2 Capital conservation buffer
9.2.1 R A firm must calculate a capital conservation buffer of common equity tier 1
capital equal to 2.5% of its total risk exposure amount.
[Note: article 129(1) (part) of CRD]
9.3 Countercyclical capital buffer
Main requirement
9.3.1 R A firm must calculate a countercyclical capital buffer of common equity tier 1
capital equal to its total risk exposure amount multiplied by the weighted
average of the countercyclical buffer rates that apply in the jurisdictions
where the firm’s relevant credit exposures are located.
[Note: article 130(1) (part) of CRD]
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