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

FCA 2013/xx
Annex B
Amendments to the Glossary of definitions
In this Annex, underlining indicates new text and striking through indicates deleted text,
unless otherwise stated.
Insert the following new definitions in the appropriate alphabetical position. The text is not
underlined.
additional tier 1 capital as defined in article 61 of the EU CRR.
additional tier 1
instrument
article 18(5)
relationship
article 18(6)
relationship
a capital instrument that qualifies as an additional tier 1 capital
instrument under article 52 of the EU CRR.
the relationship where there are participations or capital ties other
than those referred to in article 18(1) and (2) of the EU CRR
(Methods for prudential consolidation).
(in accordance with article 18 of the EU CRR (Methods for
prudential consolidation)) a relationship of one of the following
kinds:
(1) where an institution exercises a significant influence over
one or more institutions or financial institutions, but
without holding a participation or other capital ties in these
institutions; or
(2) where two or more institutions or financial institutions are
placed under single management other than under a contract
or clauses of their memoranda or articles of association.
base own funds
requirement
capital conservation
buffer
combined buffer
(for the purpose of IFPRU) an amount of own funds that an IFPRU
investment firm must hold as set out in IFPRU 3.1.6R (Own funds:
main requirement).
(in accordance with article 129(1) of CRD (Definitions)) the
amount of common equity tier 1 capital a firm must calculate in
accordance with IFPRU 9.2.1R.
the sum of:
(1) the capital conservation buffer; and
(2) the countercyclical capital buffer.
common equity tier 1
capital
common equity tier 1
instrument
as defined in article 50 of the EU CRR.
a capital instrument that qualifies as a common equity tier 1
instrument under article 26 of the EU CRR.
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