Related provisions for GENPRU 2.2.24
This table belongs to GENPRU 2.2.5 G
Topic |
Location of text |
Application and purpose of the rules in this section |
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BIPRU firms that only have simple types of capital resources (simple capital issuers) |
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Principles underlying the definition of capital resources |
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Which method of calculating capital resources applies to which type of firm |
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Purpose of the limits on the use of different forms of capital |
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Use of higher tier capital in lower tiers |
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Calculation of capital resources for insurers |
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Limits on the use of different forms of capital for insurer (capital resources gearing rules for insurer) |
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Calculation of capital resources for banks |
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Calculation of capital resources for building societies |
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Limits on the use of different forms of capital for banks and building societies (certain types of capital resources cannot be used for certain purposes) |
GENPRU 2.2.42 R8 to GENPRU 2.2.45 R; GENPRU 2.2.47 R to GENPRU 2.2.48 R 8 |
Limits on the use of different forms of capital for banks and building societies (capital resources gearing rules) |
GENPRU 2.2.29 R to GENPRU 2.2.31 G; GENPRU 2.2.46 R; GENPRU 2.2.49 R |
Calculation of capital resources for BIPRU investment firms |
GENPRU 2.2.20 G to GENPRU 2.2.21 G; GENPRU 2 Annex 4 to GENPRU 2 Annex 6 |
Limits on the use of different forms of capital for BIPRU investment firms (certain types of capital resources cannot be used for certain purposes) |
GENPRU 2.2.42 R to GENPRU 2.2.45 R; GENPRU 2.2.47 R to GENPRU 2.2.48 R |
Limits on the use of different forms of capital for BIPRU investment firms (capital resources gearing rules) |
GENPRU 2.2.29 R to GENPRU 2.2.31 G; GENPRU 2.2.46 R; GENPRU 2.2.50 R |
Example of how the capital resources calculation for BIPRU firms works |
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Capital used to meet the base capital resources requirement for BIPRU firms |
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Tier one capital instruments: general |
GENPRU 2.2.9 G to GENPRU 2.2.10 G; GENPRU 2.2.62 R to GENPRU 2.2.69 G; GENPRU 2.2.80 R to GENPRU 2.2.82 G |
Core tier one capital: profit and loss account and other reserves: material applicable to all firms |
GENPRU 2.2.85 R; GENPRU 2.2.87 R to GENPRU 2.2.89 G; GENPRU 2.2.91 G |
Core tier one capital: profit and loss account and other reserves: material specific to BIPRU firms |
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Core tier one capital: provisions relating to partnerships and limited liability partnerships |
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Core tier one capital: share premium account |
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Core tier one capital: externally verified interim net profits |
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Core tier one capital: valuation differences and fund for future appropriations for insurer |
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Tier one capital: perpetual non-cumulative preference shares |
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Innovative tier one capital (excluding issues through SPVs) |
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Innovative tier one capital (issues through SPVs) |
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Tier one capital: conversion ratio |
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Tier one capital: requirement to have sufficient unissued stock |
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Deductions from tier one capital resources |
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Deductions from tier one capital resources and tier two capital resources |
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Deductions from total capital resources |
GENPRU 2.2.14 G to GENPRU 2.2.16 G; GENPRU 2.2.250 R to GENPRU 2.2.265 R |
The effect of swaps |
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Redemption of tier one instruments |
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Redemption of tier two instruments |
GENPRU 2.2.172 R to GENPRU 2.2.174 R; GENPRU 2.2.177 R to GENPRU 2.2.178 R (upper tier two instruments); GENPRU 2.2.194 R to GENPRU 2.2.197 G (lower tier two instruments) |
Non-standard capital instruments |
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Standard form documentation for subordinated debt |
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Public sector guarantees |
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Other capital resources for insurers: unpaid share capital or unpaid initial funds and calls for supplementary contributions |
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Additional requirements for insurer carrying on with-profits insurance business |
This table belongs to GENPRU 2.2.51 G
Description of the stage of the capital resources calculation |
Stage in the capital resources table |
Amount (£) |
Total tier one capital after deductions (excluding innovative tier one instruments – see GENPRU 2.2.53 G) |
Stage F |
80 |
Total tier two capital (including innovative tier one instruments– see GENPRU 2.2.53 G) |
Stage K |
80 |
Deductions |
Stage M |
(20) |
Total tier one capital and tier two capital after deductions |
Stage N |
140 |
Upper tier three capital (this example assumes the firm has no lower tier three capital (trading book profits)) |
Stage Q |
50 |
Total capital resources |
Stage T |
190 |
This table belongs to GENPRU 2.2.55 G
Description of the stage of the capital resources calculation |
Stage in the capital resources table |
Amount (£) |
Total tier one capital and tier two capital after deductions |
Stage N |
140 |
Credit, operational, and counterparty1 risk requirement |
(100) |
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Tier one capital and tier two capital available to meet market risk requirement |
40 |
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Stage Q |
50 |
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Total capital available to meet market risk requirement |
90 |
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Market risk requirement |
(90) |
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Market risk requirement met subject to meeting gearing limit set out in GENPRU 2.2.49 R – see GENPRU 2.2.57 G |
Table: Application of tier two capital rules to tier three debt
This table belongs to GENPRU 2.2.244 R
Adjustment |
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GENPRU 2.2.159 R (General conditions for eligibility as tier two capital) |
The references in GENPRU 2.2.159R (5) (Capital must not become repayable prior to stated maturity date except in specified circumstances) to repayment at the option of the holder are replaced by a reference to GENPRU 2.2.242R (1) (Upper tier three capital should have maturity or notice period of at least two years) The reference in GENPRU 2.2.159R (10) (Description of tier two capital in marketing documents) to GENPRU 2.2.271 R (Other requirements: insurers carrying on with-profits business (Insurer only)) does not apply |
GENPRU 2.2.160 R (Holder of a non-deferred share of a building society to be treated as a senior creditor) |
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GENPRU 2.2.161 R (Additional remedies) |
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GENPRU 2.2.163 R (Legal opinion where debt subject to a law of a country outside the United Kingdom) |
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GENPRU 2.2.169 R (Ineligibility as tier two capital owing to connected transactions) |
The reference to GENPRU 2.2.177 R (General eligibility conditions for upper tier two capital) does not apply |
GENPRU 2.2.171 R (Amendments to terms of the capital instrument) |
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GENPRU 2.2.172 R to GENPRU 2.2.173 R (Redeemability at the option of the issuer) |
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GENPRU 2.2.174 R (Notification of redemption) |
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References in the rules in the first column to the fifth anniversary are amended so as to refer to the second anniversary. |
Schedule to the Recognition Requirements Regulations, Paragraph 1
(1) The [UK RIE] must have financial resources sufficient for the proper performance of its [ relevant functions] as a [UK RIE]. |
(2) In considering whether this requirement is satisfied, the [FSA] may (without prejudice to the generality of regulation 6(1)) take into account all the circumstances, including the [UK RIE's] connection with anyperson , and any activity carried on by the [UK RIE], whether or not it is anexempt activity.1 |
This table belongs to GENPRU 2.1.47 R
Firm category |
Amount: Currency equivalent of |
€5 million |
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The higher of €1 million and £1 million |
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€730,000 |
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€125,000 |
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€50,000 |
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The amount specified in UPRU 2.1.2 R (1) (Financial resources requirement). However the capital that a firm must hold in respect of that requirement is as defined by GENPRU and not as specified in that rule. The reference in that rule to initial capital does not therefore apply. |
Information which may be required. See SUP 6.3.24 G
Type of business |
Information which may be required |
All |
1. Details of how the firm plans to comply with the FSA's regulatory requirements relating to any additional regulated activities it is seeking to carry on. |
2. Descriptions of the firm's key controls, senior management arrangements and audit and proposed compliance arrangements in respect of any new regulated activity (see SYSC). |
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3. Organisation charts and details of individuals transferring or being recruited to perform new controlled functions (see SUP 10 for details of the application or transfer procedures under the approved persons regime). |
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1. A scheme of operations in accordance with SUP App 2. |
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2. (If the application seeks to vary a permission to include motor vehicle liability insurance business) details of the claims representatives required by threshold condition 2A (Appointment of claims representatives), if applicable. |
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1. A business plan which includes the impact of the variation on the firm's existing or continuing business financial projections for the firm, including the impact of the requested variation of Part IV permission on the firm's financial resources and capital adequacy requirements.2 |