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.

IPRU-INV Annex A 1 INTRODUCTION

Application

IPRU-INV Annex A 1.1RRP

This annex applies to any firm :

  1. (1)

    that is a limited liability partnership; and

  2. (2)

    that is a kind of firm to whom the provisions of this sourcebook apply.

IPRU-INV Annex A 1.2RRP

In this annex, an expression in italics has the meaning given in the Handbook Glossary.

IPRU-INV Annex A 1.3GRP
  1. (1)

    Firms are reminded that a limited liability partnership incorporated under the Limited Liability Partnership Act 2000 is a body corporate with legal personality separate to that of its members and is not therefore a form of partnership for the purposes of this sourcebook.

  2. (2)

    A limited liability partnership is not a separate prudential categorisation under this sourcebook but a kind of firm for whom the appropriate provisions of this sourcebook are modified to the extent indicated in this annex.

Purpose

IPRU-INV Annex A 1.4GRP

The purpose of this annex is to amplify Principle 8 (Financial resources) which requires a firm to maintain adequate financial resources to meet its investment business commitments and to withstand the risks to which its business is subject. This annex imposes various conditions that must be satisfied for members' capital to count as "Tier 1" or equivalent grade capital in meeting the limited liability partnership's financial resources requirement. These conditions are made up of conditions specific to limited liability partnerships3. This assists in the achievement of the statutory objective of consumer protection.

[Note: BCD Annex V Part 2 point 57]3

IPRU-INV Annex A 1.5GRP

The following rules allow inclusion of members' capital within a firm's capital if it meets the conditions in this annex:

Chapter

IPRU(INV) rule

How eligible LLP members' capital should be treated for the purposes of the IPRU(INV) rule

3

Table 3-61

Eligible LLP members' capital may be counted as Tier 1 capital under item "A" within Table 3-61.

5

Table 5.2.2 (1):

Item (1A)

Eligible LLP members' capital may be counted as Tier 1 capital within Category A of Table 5.2.2(1).

9

9.3.1

Eligible LLP members' capital may be counted as initial capital with IPRU-INV 9.3.1

2

2

2

11

Table 11.4

Eligible LLP members' capital may be counted as Item (5) in Table 11.4.

13

Table 13.15.3(1)113.1A.61

1

1

Eligible LLP members' capital may be counted as capital resources relating to companies in IPRU-INV 13.15.3(1).

Eligible LLP members' capital may be counted as initial capital within IPRU-INV 13.1A.6.