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

FCA 2013/xx
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Limits on the use of different kinds of capital: Purpose for which tier three capital
may be used (BIPRU firm only)
2.2.47 R For the purpose of meeting:
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(3) the fixed overheads requirement (where applicable);
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Limits on the use of different kinds of capital: Combined tier two and tier three
limits (BIPRU firm only)
2.2.50 R In relation to a BIPRU investment firm which calculates its capital resources
under GENPRU 2 Annex 4R (Capital resources table for a BIPRU
investment firm deducting material holdings), the figure of 200% replaces
that of 250% in GENPRU 2.2.49R.
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Table: Example of how capital resources of a BIPRU firm are measured against
its capital resources requirement
2.2.56 G This table belongs to GENPRU 2.2.55G.
Description of the stage of the capital
resources calculation
Stage in the capital
resources table
Amount
(£)
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Credit, operational and counterparty risk
requirement
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2.2.58 G In this example it is assumed that the maximum possible amount of tier one
capital is carried forward to meet the market risk requirement. There are
other options as to the allocation of tier one capital and tier two capital to
the credit, operational and counterparty risk requirement.
In order to calculate the relevant tier one capital for the upper tier three
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