Reset to Today

To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004.

Content Options:

Content Options

View Options:

Alternative versions

  1. Point in time
    2014-07-22

BIPRU 8.8 Advanced prudential calculation approaches

General

BIPRU 8.8.1RRP

A firm must not apply any advanced prudential calculation approach for the purposes of this chapter unless it has an advanced prudential calculation approach permission and that advanced prudential calculation approach permission requires the firm to use that advanced prudential calculation approach for those purposes.

BIPRU 8.8.2GRP

BIPRU 1.3 (Applications for advanced approaches) deals with how to apply for an advanced prudential calculation approach permission.

Prohibition on using the rules of an overseas regulator

BIPRU 8.8.3RRP

Even if a firm has an advanced prudential calculation approach permission that allows it to use an advanced prudential calculation approach for the purposes of this chapter, the firm may not use the requirements of another state or territory to the extent they provide for that advanced prudential calculation approach. Therefore a firm may not use BIPRU 8.7.34 R and 2BIPRU 8.7.37 R2 (Use of the capital requirements of another EEA competent authority)2 if that would involve using an advanced prudential calculation approach.

Special provisions relating to the internal ratings based approach

BIPRU 8.8.4RRP

The conditions in BIPRU 4.2.26 R (Combined use of methodologies under the IRB approach) apply to a firm's UK consolidation group or non-EEA sub-group as if that group were a single undertaking.

Special provisions relating to the CCR internal model method

BIPRU 8.8.8GRP

BIPRU 8.7.17 R deals with the combination of the CCR internal model method with other approaches to calculating exposure values on a group level.

Corporate governance arrangement for the IRB approach and the AMA

BIPRU 8.8.9GRP

The governance arrangements that apply to the governing body, the senior management and any designated committee of a firm in relation to the IRB approach also apply to the body or persons with equivalent powers with respect to the UK consolidation group or non-EEA sub-group. Where the parent undertaking and its subsidiary undertakings use rating systems on a unified basis, the approval and reporting process described in BIPRU 4.3.12 G (Approval and reporting arrangements for the IRB approach where rating systems are used on a unified group basis) apply for the purpose of this paragraph too.

33