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

FCA 2013/xx
[deleted]
8.7.4 G BIPRU 8 Annex 5 R (Decision tree for identifying the consolidated capital
resources requirement of a UK consolidation group or a non-EEA sub-group)
categorises groups by reference to what kind of undertakings they contain
(credit institutions, limited licence firms, limited activity firms or CAD full
scope firms). [deleted]
…
8.7.10 R A firm must calculate the The consolidated capital resources requirement of
its UK consolidation group or non-EEA sub-group in accordance with the
method identified by the decision tree in BIPRU 8 Annex 5R (Decision tree
for identifying the consolidated capital resources requirement of a UK
consolidation group or a non-EEA sub-group) as the higher of the following
consolidated requirements components:
…
(1) the sum of the consolidated credit risk requirement and the
consolidated market risk requirement; and
(2) the consolidated fixed overheads requirement.
8.7.12 R This table belongs to BIPRU 8.7.11R
Consolidated requirement
component
…
Consolidated operational risk
requirement
Rules on which the consolidated requirement
component are based (the applicable risk capital
requirement)
…
Operational risk capital requirement
…
8.7.18 R The credit risk capital requirement (on which the consolidated credit risk
requirement is based) is split into three two capital charges. One relates to
credit risk in the non-trading book (the credit risk capital component). One
relates to credit risk in the trading book (the counterparty risk capital
component). The third is a capital charge for exposures in the trading book
that exceed the limits in BIPRU 10.5 (Limits on exposures). This is called the
concentration risk capital component.
…
8.7.25 R A firm may not apply the second method in BIPRU 8.7.13R(3) (accounting
consolidation for the whole group) or apply accounting consolidation to parts
of its UK consolidation group or non-EEA sub-group under method three as
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