IFPRU 3.1 Base own funds requirement
Application
This section applies to an IFPRU investment firm, unless it is an exempt IFPRU commodities firm.
Purpose
This section implements EC standards for the base own funds requirement to be held by an IFPRU investment firm. In particular, it implements articles 28 and 29 of CRD.
Main requirement
-
(1)
Subject to (2), an IFPRU investment firm must maintain, at all times, common equity tier 1 capital equal to, or in excess of, the base own funds requirement.
-
(2)
For the purpose of (1), the common equity tier 1 capital of an IFPRU investment firm must comprise only of one or more of the items referred to in article 26(1)(a) to (e) of the EU CRR (Common equity tier 1 items).
[Note: article 28(1) of CRD]
At the time that it first becomes an IFPRU investment firm, a firm must hold initial capital of not less than the base own funds requirement applicable to that firm.
Calculation of the base own funds requirement
The amount of an IFPRU investment firm'sbase own funds requirement is set out in the table in IFPRU 3.1.9 R.
Table: Base own funds requirement
This table belongs to IFPRU 3.1.8 R.
|
Firm Category |
Amount: Currency equivalent of |
|
€730,000 |
|
|
€125,000 |
|
|
€50,000 |
[Note: articles 28(2), 29(1) and 29(3) of CRD]
A collective portfolio management investment firm is required to maintain base own funds requirement of €125,000 (in line with IPRU(INV) 11.3.1R(1)).