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

FCA 2013/xx
Bank
Building society
€5 million
The higher of €1 million and £1 million
BIPRU 730K firm €730,000
BIPRU 125K firm €125,000
BIPRU 50K firm €50,000
Collective portfolio management
investment firm
€125,000 plus, if the funds under management exceed
€250,000,000, 0.02% of the excess, subject to a
maximum of €10,000,000.
Definition of BIPRU 730K firm, BIPRU 125K firm and BIPRU 50K firm
2.1.49 G The terms BIPRU 730K firm, BIPRU 125K firm and BIPRU 50K firm are
defined in BIPRU 1.1 (Application and purpose). However for convenience
the table in GENPRU 2.1.50G briefly summarises them. The Capital
Adequacy Directive sets out various categories of firms subject to differing
levels of initial capital. For the purpose of the third paragraph of article
95(2) of the EU CRR, a BIPRU firm falls into the category in article 5(3) of
the Capital Adequacy Directive. In summary, a BIPRU firm:
(1) does not provide the ancillary service of safekeeping and
administration of financial instruments for the account of clients,
including custodianship and related services such as cash/collateral
management, and is not authorised to do so;
(2) does not deal in any financial instruments for its own account or
underwrite issues of financial instruments on a firm commitment
basis;
(3) offers one or more of the following services:
(a)
(b)
(c)
reception and transmission of investors’ orders for financial
instruments;
the execution of investors’ orders for financial instruments;
or
the management of individual portfolios of investments in
financial instruments; and
(4) does not hold clients’ money and/or securities and is not authorised
to do so (it should have a limitation or requirement prohibiting the
holding of client money and its permission should not include
safeguarding and administering investments).
Table: Definition of BIPRU 730K firm, BIPRU 125K firm and BIPRU 50K firm
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