GENPRU 2 Annex 6 Capital resources table for a BIPRU2 firm with a waiver from consolidated supervision
Part 1 of the capital resources calculation for an investment firm with a waiver from consolidated supervision |
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Type of capital |
Related text |
Stage |
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Core tier one capital |
(A) |
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Profit and loss account and other reserves (taking into account material interim net losses) |
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Sole trader capital |
None |
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share premium account |
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Externally verified interim net profits |
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Hybrid capital1 1 |
1 | ||
Stage B11 1 |
GENPRU 2.2.115A R to GENPRU 2.2.117B R1 1 |
(B1)1 |
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1Stage B2 |
(B2) |
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Stage C1 1 |
GENPRU 2.2.115F R to GENPRU 2.2.117B R1 1 |
(C)1 |
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Total tier one capital before deductions = A + B1 + B2 + C1 1 |
(D) |
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Deductions from tier one capital |
(E) |
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Investments in own shares |
None |
(Part 1 of stage E) |
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Intangible assets |
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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 |
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Net losses on equities held in the available-for-sale financial asset category |
(Part 1 of stage E) |
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(For certain limited purposes only certain additional deductions are made here. This line does not include material holdings.) |
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Material holdings falling into Note (4) |
Note (4) of Part 2 of this table; GENPRU 2.2.208 R to GENPRU 2.2.215 R |
(Part 2 of stage E) |
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(For certain limited purposes only certain additional deductions of material holdings are made here) |
Note (5) of Part 2 of this table; GENPRU 2.2.239R (2) to GENPRU 2.2.239R (4) |
(Part 3 of stage E) |
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Total tier one capital after deductions = D-E |
(F) |
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Upper tier two capital |
(G) |
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Perpetual cumulative preference shares |
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Perpetual subordinated debt |
See previous entry |
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Perpetual subordinated securities |
See previous entry |
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Revaluation reserves |
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General/collective provisions |
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Surplus provisions |
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Lower tier two capital |
(H) |
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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 |
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Long term subordinated debt |
See previous entry |
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Fixed term subordinated securities |
See previous entry |
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Total tier two capital = G+H |
(I) |
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Deductions from tier two capital |
(J) |
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(For certain limited purposes only certain additional deductions are made here) |
Note (5) of Part 2 of this table; GENPRU 2.2.239R (2) to GENPRU 2.2.239R (4) |
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Total tier two capital after deductions = I - J |
(K) |
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Total tier one capital plus tier two capital = F+K |
(L) |
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Deductions from the totals of tier one and two |
(M) |
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Material holdings falling into Note (5) |
Note (5) of Part 2 of this table; GENPRU 2.2.208 R to GENPRU 2.2.215 R |
(Part 1 of stage M) |
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Contingent liabilities |
Note (6) of Part 2 of this table |
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Expected loss amounts and other negative amounts |
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(Part 2 of stage M) |
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Total tier one capital plus tier two capital after deductions = L-M |
(N) |
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In calculating whether a firm's capital resources exceed its capital resources requirement:
as the case may be, must be deducted here. |
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Upper tier three |
(O) |
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Short term subordinated debt |
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Lower tier three |
(P) |
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Net interim trading book profit and loss |
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Total tier three capital=O+P |
(Q) |
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Total capital before deductions = N+Q |
(R) |
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Deductions from total capital |
(S) |
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Total capital after deductions = R-S |
(T) |
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In calculating whether a firm's capital resources exceed its capital resources requirement, the market risk capital requirement, and2 the fixed overheads requirement must be deducted here. 2 |
Part 2 of the capital resources calculation for an investment firm with a waiver from consolidated supervision |
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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. |
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Note (2): If the amount calculated at:
is a negative number the firm's capital resources are less than its capital resources requirement. |
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Note (4): The material holdings that must be deducted at part 2 of stage E are material holdings issued by undertakings which would have been members of the firm's UK consolidation group or non-EEA sub-group if the firm did not have an investment firm consolidation waiver if: |
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(1) |
in relation to a BIPRU firm2, the holding forms part of the undertaking's tier one capital resources; or 2 |
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(2) |
(subject to (3)) in relation to any other undertaking, the holding would form part of the undertaking's tier one capital resources if: |
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(a) |
that undertaking were a BIPRU firm with a Part 4A permission; and |
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(b) |
it had carried on all its business in the United Kingdom and had obtained whatever permissions for doing so are required under the Act; or |
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(3) |
in relation to any undertaking not falling within (1) and for which the methodology in (2) does not give an answer, the holding would form part of its tier one capital resources if the undertaking were a BIPRU firm of the same category as the firm carrying out the calculation under this Annex. |
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Note (5): The material holdings that must be deducted by a firm at part 3 of stage E and at stage J or at Part 1 of stage M are material holdings issued by undertakings which would have been members of that firm's UK consolidation group or non-EEA sub-group if the firm did not have an investment firm consolidation waiver and which do not fall into Note (4). |
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Note (6): The contingent liabilities that must be deducted by a firm at Part 1 of stage M are any contingent liabilities which the firm has in favour ofBIPRU firms2, financial institutions, asset management companies and ancillary services undertakings which would have been members of the firm's UK consolidation group or non-EEA sub-group if the firm did not have an investment firm consolidation waiver. 2 |