Related provisions for MIPRU 4.2C.27
In the FCA's view:
the table in (2) provides a non-exhaustive list of examples of key positions that should, subject to (d), be within a firm's definition of staff who are risk takers;
firms should consider how the examples in the table in (2) apply to their own organisational structure;1
firms may find it useful to set their own metrics to identify their risk takers based, for example, on trading limits; and
a firm should treat a person as being BIPRU Remuneration Code staff in relation to remuneration in respect of a given performance year if they were BIPRU Remuneration Code staff for any part of that year.
[Note: The FCA has published guidance on the application of particular rules on remuneration structures in relation to individuals who are BIPRU Remuneration Code staff for only part of a given performance year. This guidance is available at www.fca.org.uk/firms/remuneration
Suggested business lines
Heads of significant business lines (including regional heads) and any individuals or groups within their control who have a material impact on the firm's risk profile
Investment banking (including mergers and acquisitions advisory)
Heads of support and control functions and other individuals within their control who have a material impact on the firm's risk profile
This table belongs to BIPRU 3.7.1 R
[Note: BCD Annex II]
Guarantees having the character of credit substitutes
Endorsements on bills not bearing the name of another credit institution
Transactions with recourse
Irrevocable standby letters of credit having the character of credit substitutes
Assets purchased under outright forward purchase agreements
Asset sale and repurchase agreements as defined in Article 12(3) and (5) of the Bank Accounts Directive
Other items also carrying full risk
Documentary credits issued and confirmed (see also medium/low risk).
Warranties and indemnities (including tender, performance, customs and tax bonds) and guarantees not having the character of credit substitutes.
Irrevocable standby letters of credit not having the character of credit substitutes.
Undrawn credit facilities (agreements to lend, purchase securities, provide guarantees or acceptance facilities) with an original maturity of more than one year.
Note issuance facilities (NIFs) and revolving underwriting facilities (RUFs).
Documentary credits in which underlying shipment acts as collateral and other self-liquidating transactions.
Undrawn credit facilities (agreements to lend, purchase securities, provide guarantees or acceptance facilities) with an original maturity of up to and including one year which may not be cancelled unconditionally at any time without notice or that do not effectively provide for automatic cancellation due to deterioration in a borrower's creditworthiness.
Undrawn credit facilities (agreements to lend, purchase securities, provide guarantees or acceptance facilities) which may be cancelled unconditionally at any time without notice, or that do effectively provide for automatic cancellation due to deterioration in a borrower's creditworthiness. Retail credit lines may be considered as unconditionally cancellable if the terms permit the firm to cancel them to the full extent allowable under consumer protection and related legislation.