BIPRU 6.1 Operational risk: Application and purpose

A BIPRU limited licence firm or BIPRU limited activity firm that wishes to calculate an operational risk capital requirement in accordance with this chapter for the purposes of its capital resources requirement should apply for a waiver to modify GENPRU 1.1 or seek a variation to its permission so that it is treated as a full scope BIPRU investment firm.

The purpose of BIPRU 6 is:

1. (1)

   to detail the requirement to hold capital to cover operational risk losses and have appropriate systems and controls in place to manage operational risk; and

2. (2)

   to explain how to calculate the operational risk capital requirement, or ORCR.

BIPRU 6 implements:

1. (1)

   Articles 102 to 104;

2. (2)

   Article 105, in part; and

3. (3)

   Annex X;

of the Banking Consolidation Directive.