IFPRU TP 7 Capital conservation buffer: transitional

1Application

7.1

R

IFPRU TP 7 applies to an IFPRU investment firm, unless it is an IFPRU limited licence firm or exempt IFPRU commodities firm.

Purpose

7.2

G

This section implements article 160 of CRD in relation to the capital conservation buffer. The amounts of the capital conservation buffer in IFPRU TP 7 apply instead of the amount of the capital conservation buffer in IFPRU 10.2.1 R (Main requirement) for the duration of the transitional.

Duration of transitional

7.3

R

IFPRU TP 7 applies with effect from 1 January 2016 (which is the date that IFPRU 10.2 (Capital conservation buffer) comes into effect) until 31 December 2018.

Modified main requirement

7.4

R

This rule modifies IFPRU 10.2.1 R (Main requirement) in the following manner:

(1)

from 1 January 2016 until 31 December 2016, the capital conservation buffer is the amount of common equity tier 1 capital equal to 0.625% of a firm's total risk exposure amount;

(2)

from 1 January 2017 until 31 December 2017, the capital conservation buffer is the amount of common equity tier 1 capital equal to 1.25% of a firm's total risk exposure amount;; and

(3)

from 1 January 2018 until 31 December 2018, the capital conservation buffer is the amount of common equity tier 1 capital equal to 1.875% of a firm's total risk exposure amount.