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

FCA 2013/xx
BIPRU investment firm
without an investment
firm consolidation
waiver
BIPRU investment firm
without an investment
firm consolidation
waiver
BIPRU investment firm
with an investment firm
consolidation waiver
…
…
…
Applies to a BIPRU
investment firm not
using GENPRU 2
Annex 5R or GENPRU
2 Annex 6R
A BIPRU investment
firm must give one
Month’s prior notice to
the appropriate
regulator FCA before
starting to use or
stopping using this
method
A firm with an
investment firm
consolidation waiver
must use this method.
No other BIPRU
investment firm may use
it.
Calculation of capital resource: Which rules apply to BIPRU investment firms
2.2.20 G GENPRU 2.2.19R sets out three different methods of calculating capital
resources for BIPRU investment firms. The differences between the three
methods relate to whether and how material holdings and illiquid assets are
deducted when calculating capital resources. The method depends on
whether a firm has an investment firm consolidation waiver. If a firm does
have such a waiver, it should deduct illiquid assets, own group material
holdings and certain contingent liabilities. If a firm does not have such a
waiver, it should choose to deduct either material holdings or, subject to
notifying the appropriate regulator FCA, illiquid assets.
…
Limits on the use of different kinds of capital: Purpose for which tier three capital
may not be used (BIPRU firm only)
2.2.44 R Tier one capital and tier two capital are the only type of capital resources
that a BIPRU firm may use for the purpose of meeting:
…
(2) the operational risk capital requirement; [deleted]
…
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