Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.


Status: This chapter was amended on 31 December 2020 as a result of Brexit. However, it is subject to the FCA Prudential Transitional Direction, which means that firms should not comply with these provisions yet. Instead, firms must follow this link and continue to comply with pre-IP completion day requirements https://www.handbook.fca.org.uk/handbook?date=31-12-2020&timeline=True (unless specified otherwise in the Direction). To see a full list of Handbook modules affected, please see Section B of the Annex to the Direction.

IFPRU 1.3 Supervisory benchmarking of internal approaches for calculating own funds requirements

IFPRU 1.3.1RRP

Except for operational risk, a firm that is permitted to use internal approaches for the calculation of risk weighted exposure amounts or own fund requirements must report annually to the FCA:

  1. (1)

    the results of the calculations of its internal approaches for its exposures or positions that are included in the benchmark portfolios; and

  2. (2)

    an explanation of the methodologies used to produce those calculations in (1).

[Note: article 78(1) of CRD]

IFPRU 1.3.2GRP

A firm must submit the results of the calculations referred to in IFPRU 1.3.1 R (1), in line with the template set out in the CRD ITS on templates, definitions and IT-solutions1.

IFPRU 1.3.3RRP

Where the FCA has chosen to develop specific portfolios1, a firm must report the results of the calculations separately from the results of the calculations referred to in IFPRU 1.3.1R1.

[Note: article 78(2) of CRD]