BIPRU TP 34 Large exposures: General transitional provisions

1Application

34.1

R

This section applies to a BIPRU firm.

Purpose

34.2

G

This section implements the intra-group exemption in Article 113(3)(f) and the national discretion for exemptions in Articles 113(4)(a) and (c) of the Banking Consolidation Directive and the national discretion for trading book concentration risk excess in Article 31 of the Capital Adequacy Directive.

Duration of transitional

34.3

R

This section applies until 31 December 2010.

Version of BIPRU to be used

34.4

R

Any reference in this section to BIPRU is to the version in force on 30 December 2010.

Rules in BIPRU that apply until 31 December 2010

34.5

R

The following rules apply until 31 December 2010:

(1)

BIPRU 10.6.3 R (10) (Exemption for covered bonds from the large exposure limit);

(2)

BIPRU 10.5 (Limits on exposures and large exposures);

(3)

BIPRU TP 17 (Large exposures: Exemptions for intra-group exposures for banks and investment firms), if a firm has a waiver that expires on 31 December 2010 which has the effect of allowing it to apply the exemptions in BIPRU TP 17; and

(4)

BIPRU TP 19 (Large exposures: Exemptions for intra-group exposures on a consolidated basis), if a firm has a waiver that expires on 31 December 2010 which has the effect of allowing it to apply the exemptions in BIPRU TP 17 on a consolidated basis.

34.6

G

The Capital Requirements Directive (Large Exposures) Instrument 2010 (FSA 2010/41) comes into force on 31 December 2010. The effect of BIPRU TP 34.5R is that the BIPRU provisions contained in that instrument that amend, delete or replace, the rules set out in BIPRU TP 34.5R are disapplied until 1 January 2011.