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BIPRU TP 1 Applicable chapter of IPRU and other general provisions

1TP 1

Applicable chapter of IPRU and other general provisions

Application

1.1

R

BIPRU TP 1 applies to:

(1)

a BIPRU firm; and

(2)

any firm to which BIPRU 8 (Group risk - consolidation) applies.

Version of IPRU to be used

1.2

R

Any reference in BIPRU TP to IPRU is to the version in force on 31 December 2006.

Categorisation of BIPRU investment firms

1.3

R

For the purposes of BIPRU TP the definitions of securities and futures firm, investment management firm and personal investment firm are amended as follows:

(1)

if a firm fell into one of those categories on 31 December 2006 it remains in that category unless changed under (2);

(2)

if a firm has got a permission that includes a requirement that it comply with the provisions of BIPRU TP applicable to one of those categories, that firm falls into that category; and

(3)

a BIPRU investment firm that is not an investment management firm, UCITS investment firm or a personal investment firm is a securities and futures firm.

Applicable part of IPRU on a solo basis

1.4

R

(1)

This rule identifies which part of IPRU applies where BIPRU TP applies IPRU to a firm on a solo basis.

(2)

IPRU(BANK) applies to a bank.

(3)

IPRU(BSOC) applies to a building society.

(4)

IPRU(INV) applies to a BIPRU investment firm as follows:

(a)

Chapter 5 applies to an investment management firm;

(b)

Chapter 7 applies to a UCITS investment firm;

(c)

Chapter 10 applies to a securities and futures firm; and

(d)

Chapter 13 applies to a personal investment firm.

General provisions about consolidation

1.5

R

Each provision of BIPRU TP that applies on a solo basis also applies for the purposes of BIPRU 8 (Group risk - consolidation). This is subject to the provisions of BIPRU TP concerned.

1.6

G

Many sections of BIPRU TP deal specifically with when and how they apply on a consolidated basis. However BIPRU TP will still apply for consolidation purposes even where this is not the case. BIPRU TP 1.5R does not apply to BIPRU TP 2.1 (Solo consolidation) as solo consolidation is a concept that only applies to solo requirements.

Classification of groups for certain consolidation rules

1.7

R

(1)

This rule sets out how to classify a UK consolidation group or non-EEA sub-group ("group") to which consolidated requirements are applied under certain parts of BIPRU TP.

(2)

If the answer to the question at stage 1 of 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) with respect to the group is Yes and there is a building society in the group, the group is referred to in BIPRU TP as a building society group.

(3)

If a non-EEA sub-group is part of a UK consolidation group that is a building society group then the non-EEA sub-group is also a building society group. However a firm may use (2) for the purposes of calculating the consolidated capital resources of the non-EEA sub-group where capital resources are calculated under IPRU.

(4)

If the answer to the question at stage 1 of the decision tree in BIPRU 8 Annex 2R with respect to the group is Yes and the group is not a building society group, the group is referred to in BIPRU TP as a banking group.

(5)

In any other case the group is referred to in BIPRU TP as an investment services group.