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 TP 9 Large exposures limits

1Application

9.1

R

IFPRU TP 9 applies to an IFPRU investment firm, unless it is an exempt IFPRU commodities firm.

Purpose

9.2

G

IFPRU TP 9 contains the rules that exercise the discretion afforded to the FCA as competent authority under article 493(4) to (7) of the EU CRR. The applicable limits in IFPRU TP 9 apply for the duration of the transitional.

Duration of transitional

9.3

R

IFPRU TP 9 applies until 31 December 2020.

Large exposures limits

9.4

R

For the purposes of article 493(4) of the EU CRR, a firm may incur any of the exposures provided for in article 493(5) of the EU CRR meeting the conditions set out in article 493(6) of the EU CRR, up to the following limits:

(1)

100% of the firm’s common equity tier 1 capital and additional tier 1 capital until 31 December 2018;

(2)

75% of the firm’s common equity tier 1 capital and additional tier 1 capital until 31 December 2019; and

(3)

50% of the firm’s common equity tier 1 capital and additional tier 1 capital until 31 December 2020.