Related provisions for BIPRU 12.5.62
1 - 6 of 6 items.
A firm which chooses to warehouse assets in the way described in BIPRU 12.5.72R should consider the particular risks that arise from the method of financing that it uses to pre-fund those assets. For example, financing of warehoused assets by means of short-term (rather than long-term) funding is more likely to put that firm under liquidity pressure in the event that its proposed securitisation is not completed (either at all, or at the expected date).
As part of the SLRP, the FSA will give a standard ILAS BIPRU firmindividual liquidity guidance advising it of the amount and quality of liquidity resources which the FSA considers are appropriate, having regard to the liquidity risk profile of that firm. In giving individual liquidity guidance, the FSA will also advise the firm of what it considers to be a prudent funding profile for the firm. In giving the firmindividual liquidity guidance as to its funding profile, the FSA will
(1) Subject to (3), a simplified ILAS BIPRU firm that has assets or liabilities denominated in either or both euros and United States dollars must carry out separate calculations under BIPRU 12.6.9Rin relation to its positions in each of those currencies, in addition to that which it carries out in relation to its sterling positions (if any).(2) A firm to which (1) applies must ensure that, for the purpose of meeting the simplified buffer requirement, it holds in its liquid assets
After completing a review of the ILAA as part of the SLRP, the FSA will give a standard ILAS BIPRU firmindividual liquidity guidance, advising it of the amount and quality of liquidity resources which the FSA considers are appropriate having regard to the liquidity risk profile of the firm. In giving individual liquidity guidance, the FSA will also advise the firm of what it considers to be a prudent funding profile for the firm. In giving the firmindividual liquidity guidance
BIPRU 12.2 provides that an ILAS BIPRU firm must ensure that its liquidity resources contain an adequate buffer of high quality, unencumbered assets. BIPRU 12.7 describes in more detail the nature of the assets that are eligible for inclusion in that buffer. The rules in this section provide that some types of assets are eligible for use only by a simplified ILAS BIPRU firm.
In deciding on the precise composition of its liquid assets buffer, a firm should ensure that it tailors the contents of the buffer to the needs of its business and the liquidity risk that it faces. In particular, a firm should ensure that it holds assets in its buffer which can be realised with the speed necessary to meet its liabilities as they fall due. In doing so, a firm should have regard to the currencies in which its liabilities are denominated and should take into account