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

FCA 2013/xx
1.1.5 G Guidance on the categorisation of investment firms for the purposes of
BIPRU and GENPRU is included in PERG 13 (Guidance on the scope of the
Markets in Financial Instruments Directive and the recast Capital Adequacy
Directive). [deleted]
The definition of a BIPRU firm
1.1.6 R Subject to BIPRU 1.1.7R, a BIPRU firm means a firm that is:
(1) a building society; or
(2) a bank; or
(3) a full scope BIPRU investment firm; or
(4) a BIPRU limited licence firm; or
(5) a BIPRU limited activity firm. [deleted]
1.1.7 R None of the following is a BIPRU firm and each is excluded from each of
the categories of BIPRU investment firm listed in BIPRU 1.1.6R(3) to
BIPRU 1.1.6R(5) and BIPRU 1.1.18R(2) to (4):
…
1.1.8 R A firm falling within BIPRU 1.1.6R(3) to BIPRU 1.1.6R(5) is a BIPRU
investment firm. A BIPRU investment firm includes a collective portfolio
management investment firm that is not excluded under BIPRU 1.1.7R.
[deleted]
1.1.9 G EEA firms are subject to the prudential standards of their home state
regulator. But the Banking Consolidation Directive permits a host state
competent authority to require a BCD credit institution to meet certain
standards relating to its liquidity. The appropriate regulator's approach to
liquidity for such firms is set out in BIPRU 12. [deleted]
1.1.10 G …
(2) …
(a)
(b)
it is unlikely that a firm that is not subject to equivalent
supervision will be able to satisfy the threshold conditions (and
in particular threshold condition 5 (Suitability)) and it is
unlikely that it will be possible to establish that the firm does
satisfy them; and
such a firm is likely to pose a threat to the interests of
consumers and potential consumers, particularly as effective
supervision of an overseas firm depends on cooperation
between the appropriate regulator and the regulatory body
that authorises the firm in its home country and on the
appropriate regulator being able to place appropriate reliance
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