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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.

foundation IRB approach

    23one of the following:

      1. (a) (in relation to the sovereign, institutional and corporate IRB exposure class) the approach under the IRB approach, described in BIPRU 4.4 (The IRB approach: Exposures to corporates, institutions and sovereigns) under which a firm uses the values for LGD and conversion factors set out in BIPRU 4.4 rather than supplying its own estimates;
      1. (b) (where the approach in (a) is being applied on a consolidated basis) the method in (a) as applied on a consolidated basis in accordance with BIPRU 8 (Group risk - consolidation); or
      1. (c) when the reference is to the rules of or administered by a regulatory body other than the141 appropriate regulator,141 whatever corresponds to the approach in (a) or (b), as the case may be, under those rules.