- (a) 2
an insurer unless it is:
- (a) 2
it has assets under management or administration of at least 2£10 billion (or the equivalent amount in foreign currency); or22
- (b) 2
- (c) 22
Subject to (4), where2 all of the BIPRU investment firms within the same UK consolidation group or non-EEA sub-group, taken together as if they were one firm, meet any of the criteria in (2),22SYSC 20 applies to each of those BIPRU investment firms as if it individually met the inclusion criteria in (2).22
Any BIPRU investment firm which is included within the scope of SYSC 202 in accordance with (2) or2 (3) in any given year will continue to be subject to SYSC 20 for the following two years irrespective of whether or not 2it continues to meet the inclusion criteria2 in any of those subsequent years.222
This chapter contains rules on reverse stress testing, which require a firm to identify and assess events and circumstances that would cause its business model to become unviable. This chapter also requires the firm's senior management or governing body to review and approve the results of the reverse stress testing exercise. This should help the firm's senior management to identify the firm's vulnerabilities and design a strategy to prevent or mitigate the risk of business failure.
The reverse stress testing requirements are an integral component of a firm's business planning and risk management under SYSC. For BIPRU firms as referred to in SYSC 20.1.1R (1)(a), this chapter amplifies SYSC 7.1.1 G to SYSC 7.1.8 G on risk control. For insurers as referred to in SYSC 20.1.1R (1)(b), this chapter amplifies SYSC 14.1.17 G to SYSC 14.1.25 G on business planning and risk management.