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

FCA 2013/xx
resources requirement in this section.
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Individual capital guidance
2.20 R The IPRU capital resources requirement does not include any individual
capital ratio notified to a bank under Chapter CO of IPRU(BANK) or any
similar notification by the appropriate regulator to any other firm.
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How to apply IPRU
2.22 R If the part of IPRU that applies to a firm applies different calculations to
different types of firm the firm must use the calculations that it would have to
use under BIPRU TP 3 (Pre CRD capital requirements applying on a solo
basis during 2007) as applicable before its expiry.
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2.24 G BIPRU TP 4 to BIPRU TP 9 (Pre CRD capital requirements applying on a
solo basis during 2007) as applicable before their expiry explain how
concepts in IPRU and GENPRU map onto the ones in IPRU. This will enable
a firm to decide which calculations it should use for the purposes of BIPRU
TP 2.22R and BIPRU TP 2.23R.
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2.25 R For the purpose of calculating the part of the IPRU capital resources
requirement that corresponds to the concentration risk capital component a
firm may identify the trading book exposures on which that requirement is
based using BIPRU 10 (Large exposures requirements) except to the extent
that BIPRU 10 involves the IRB approach.
2.26 G The concentration risk capital component is the capital requirement for a firm
that chooses to have trading book exposures that exceed the large exposure
limits for the non-trading book. In most cases IPRU has a similar capital
requirement. The purpose of BIPRU TP 2.26R is to allow a firm to calculate
the amount of the excess trading book exposures for which it calculates the
additional capital charge using BIPRU 10 (Large exposures requirements) in
order to avoid having to apply the IPRU large exposure requirements for this
purpose only.
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Capital floors: consolidation
2.30 R If a firm calculates risk weighted exposure amounts on a consolidated basis in
accordance with the IRB approach or uses the advanced measurement
approach on a consolidated basis, BIPRU TP 2.8R to BIPRU TP 2.27G apply
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