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IPRU-INV Annex A 1 INTRODUCTION

Application

IPRU-INV Annex A 1.1R

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 1.2R

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

IPRU-INV Annex A 1.3G
  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 1.4G

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 partnerships and general conditions based for the most part on those set out in article 57 of the Banking Consolidation Directive. This assists in the achievement of the statutory objective of consumer protection.

IPRU-INV Annex A 1.5G

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

10

Table 10-61(1)A

Table 10-61(1)B

Table 10-62(2)A

Table 10-62(2)B

Table 10-62(2)C

Eligible LLP members' capital may be counted as initial capital within the relevant table.

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.