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 7.1 Application

IFPRU 7.1.1 R RP

Purpose

IFPRU 7.1.2 G RP

This section contains rules that exercise the discretion afforded to the FCA as competent authority under article 6(4) of the UK CRR2 (Exemption for certain investment firms).

Application of BIPRU 12 (Liquidity standards)

IFPRU 7.1.3 G RP

The FCA's liquidity regime and liquidity reporting in BIPRU 12 (Liquidity standards) and SUP 16 (Reporting requirements) applies1 to an IFPRU investment firm1.

IFPRU 7.1.4 G RP

A1firm should be guided by BIPRU 12 (Liquidity standards) when complying with article 416 of the UK CRR2 (Reporting on liquid assets).

Exemption from Part Six of EU CRR on individual basis

IFPRU 7.1.5 R RP

For the purpose of article 6(4) of the UK CRR2, a firm is exempt from compliance with the obligations in Part Six of the UK CRR2 (Liquidity) on an individual basis unless it meets both the following conditions:

  1. (1)

    it is an ILAS BIPRU firm; and

  2. (2)

    it is a significant IFPRU firm.

Exemption from Part Six of EU CRR on consolidated basis

IFPRU 7.1.6 R RP

For the purpose of article 11(3) of the UK CRR2, a FCA consolidation group that meets the condition in IFPRU 7.1.7 R is exempt from compliance with the obligations in Part Six of the UK CRR2 (Liquidity) on a consolidated basis.

IFPRU 7.1.7 R RP

The members of the FCA consolidation group comprise only firms that are exempt under IFPRU 7.1.5 R.