GENPRU 2 Annex 5 Capital resources table for a BIPRU2 firm deducting illiquid assets

The capital resources calculation for an investment firm that deducts illiquid assets

Type of capital

Related text

Stage

Core tier one capital

(A)

Permanent share capital

GENPRU 2.2.83 R

Profit and loss account and other reserves (taking into account material interim net losses)

GENPRU 2.2.85 R to GENPRU 2.2.90 R

Eligible partnership capital

GENPRU 2.2.93 R; GENPRU 2.2.95 R

Eligible LLP members' capital

GENPRU 2.2.94 R; GENPRU 2.2.95 R

Sole trader capital

None

Share premium account

GENPRU 2.2.101 R

Externally verified interim net profits

GENPRU 2.2.102 R

Hybrid capital1

1

1

Stage B11

1

1GENPRU 2.2.115A R to GENPRU 2.2.117B R1

(B1)1

1Stage B2

GENPRU 2.2.115D R to GENPRU 2.2.117B R

(B2)

Stage C1

1

GENPRU 2.2.115F R to GENPRU 2.2.117B R1

1

(C)1

Total tier one capital before deductions = A + B1 + B2 + C1

1

(D)

Deductions from tier one capital

(E)

Investments in own shares

None

Intangible assets

GENPRU 2.2.155 R

Excess of drawings over profits for partnerships, limited liability partnerships and sole traders

GENPRU 2.2.100 R; there is no related text for sole traders

Net losses on equities held in the available-for-sale financial asset category

GENPRU 2.2.185 R

(For certain limited purposes only certain additional deductions are made here)

GENPRU 2.2.239R (2) to GENPRU 2.2.239R (4)

Total tier one capital after deductions = D-E

(F)

Upper tier two capital

(G)

Perpetual cumulative preference shares

GENPRU 2.2.159 R to GENPRU 2.2.181 R

Perpetual subordinated debt

See previous entry

Perpetual subordinated securities

See previous entry

Revaluation reserves

GENPRU 2.2.185 R

General/collective provisions

GENPRU 2.2.187 R to GENPRU 2.2.189 R

Surplus provisions

GENPRU 2.2.190 R to GENPRU 2.2.193 R

Lower tier two capital

(H)

Fixed term preference shares

GENPRU 2.2.159 R to GENPRU 2.2.174 R; GENPRU 2.2.194 R to GENPRU 2.2.196 R

Long term subordinated debt

See previous entry

Fixed term subordinated securities

See previous entry

Total tier two capital = G+H

(I)

Deductions from tier two capital

(J)

(For certain limited purposes only certain additional deductions are made here)

GENPRU 2.2.239R (2) to GENPRU 2.2.239R (4)

Total tier two capital after deductions = I - J

(K)

Total tier one capital plus tier two capital = F+K

(L)

Deductions from the totals of tier one and two

(M)

Expected loss amounts and other negative amounts

GENPRU 2.2.236 R

(Part 1 of stage M)

Securitisation positions

GENPRU 2.2.237 R

Reciprocal cross-holdings

GENPRU 2.2.217 R to GENPRU 2.2.220 R

(Part 2 of stage M)

Total tier one capital plus tier two capital after deductions = L-M

(N)

In calculating whether a firm's capital resources exceed its capital resources requirement:

Upper tier three

(O)

Short term subordinated debt

GENPRU 2.2.241 R to GENPRU 2.2.245 R

Lower tier three

(P)

Net interim trading book profit and loss

GENPRU 2.2.246 R to GENPRU 2.2.249 R

Total tier three capital=O+P

(Q)

Total capital before deductions = N+Q

(R)

Deductions from total capital

(S)

Illiquid assets

GENPRU 2.2.259 R to GENPRU 2.2.260 R

Free deliveries

BIPRU 14.4

Total capital after deductions = R-S

(T)

In calculating whether a firm's capital resources exceed its capital resources requirement, the market risk capital requirementand2 the fixed overheads requirement must be deducted here.

2

Note (1): Where the table refers to related text, it is necessary to refer to that text in order to understand fully what is included in the descriptions of capital items and deductions set out in the table.

Note (2): If the amount calculated at:

is a negative number the firm's capital resources are less than its capital resources requirement.