IPRU-INV 14.5 GROUP FINANCIAL RESOURCES REQUIREMENT

A firm must calculate its group financial resources requirement as the aggregate of:

1. (1)

   the sum of the financial resources requirements of all group entities within the scope of consolidation calculated in accordance with rule 14.5.2, except that:

   1. (a)

      requirements in respect of intra-group balances with other entities within the scope of consolidation should be excluded; and

   2. (b)

      [deleted]

2. (2)

   the sum of any adjustments that are made to each firm's financial resources, calculated on a solo basis in accordance with rule 14.4.3, in order to arrive at the amount of financial resources used to meet its solo financial resources requirement. These adjustments must exclude deductions in respect of the investment in and other relationships with other entities that are included within the scope of consolidation.

3. (3)

   [deleted]

The financial resources requirements of entities in which the group holds a participation must be included proportionately.

Financial resources requirements for individual entities in the group are:

1. (1)

   for firms regulated by the FCA, their regulatory capital requirement under FCA rules;

2. (2)

   [deleted]

3. (2A)

   for entities that are recognised third country credit institutions or recognised third country investment firms and which are subject to the local regulatory capital requirement of that regulator, that local regulatory capital requirement;

4. (2B)

   for entities not in (2A) that are regulated by a third country competent authority named in the table in BIPRU 8 Annex 6R as it applied on 31 December 2021 and which is subject to the local regulatory capital requirement of that regulator, that local regulatory capital requirement; and

5. (3)

   for other entities in the group, a notional financial resources requirement calculated as if the entity were regulated by the FCA.