Related provisions for BIPRU 2.1.18
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(1) 3This paragraph gives guidance as to the amount to be deducted at Part 2 of stage M (Deductions from the totals of tier one and two) of GENPRU 2 Annex 2 (Capital resources table for a bank) and GENPRU 2 Annex 3 (Capital resources table for a building society) in respect of investments in subsidiary undertakings and participations (excluding any amount which is already deducted as material holdings or qualifying holdings).(2) The effect of those rules is to achieve the deduction
The rules in GENPRU and BIPRU do not allow a firm that is a parent undertaking to incorporate the capital and requirements of a subsidiary undertaking in the calculation of that firm'scapital resources and capital resources requirement. A firm that wishes to incorporate a subsidiary undertaking for this purpose should therefore apply for a solo consolidation waiver.
For the purpose of GENPRU 2.1.60 R:(1) an existing controller of a bank means:(a) a person who has been a parent undertaking of that bank since 31 December 2006 or earlier; or(b) a person who became a parent undertaking of that bank after 31 December 2006 but who, when he became a parent undertaking of that bank, was a subsidiary undertaking of an existing controller of that bank;(2) the relevant amount of capital as referred to in GENPRU 2.1.60R (2)(a) is adjusted by identifying
Table: Items which must be deducted in arriving at financial resources 1 Investments in own shares2 Investments in subsidiaries (Note 1) 3 Intangible assets (Note 2) 4 Interim net losses (Note 3) 5 Excess of drawings over profits for a sole trader or a partnership (Note 3) Notes 1. Investments in subsidiaries are the full balance sheet value. 2. Intangible assets are the full balance sheet value of goodwill, capitalised development costs, brand names, trademarks
If the Part 4A permission of a firm contains a requirement obliging it to comply with this rule with respect to a third-country banking and investment group of which it is a member, it must comply, with respect to that third-country banking and investment group, with the rules in Part 2 of GENPRU 3 Annex 2, as adjusted by Part 3 of that annex.
Glossary of defined terms for Chapter 9Note: If a defined term does not appear in the glossary below, the definition appearing in the HandbookGlossary applies. approved exchangemeans an investment exchange listed as such in Appendix 33 to IPRU-INV 3.exchangemeans a recognised investment exchange or designated investment exchange.initial capitalmeans the initial capital of a firm calculated in accordance with section 9.3.intangible assetsthe full balance sheet value of a firm's