BIPRU TP 29 Liquid assets buffer scalar: simplified ILAS BIPRU firms

Application

29.1

R

BIPRU TP 29 applies to a firm which on 1 June 2010 is a simplified ILAS BIPRU firm.

Duration of transitional provisions

29.2

R

BIPRU TP 29 applies from 1 December 2009 until 30 September 2013.

Transitional provisions

29.3

R

A simplified ILAS BIPRU firm falling into BIPRU TP 29.1 must ensure that:

(1)

at all times between 1 October 2010 and 30 September 2011, its liquid assets buffer is no less than 30% of the amount of its simplified buffer requirement;

(2)

at all times between 1 October 2011 and 30 September 2012, its liquid assets buffer is no less than 50% of its simplified buffer requirement; and

(3)

at all times between 1 October 2012 and 30 September 2013, its liquid assets buffer is no less than 70% of its simplified buffer requirement.

29.4

G

The effect of BIPRU TP 29.3 is that a firm that is a simplified ILAS BIPRU firm as at 1 December 2009 has a transitional period of three years within which to build up its liquid assets buffer so that at the end of that period it holds in its buffer assets equal to 100% of its simplified buffer requirement.

29.5

G

In relation to a firm which becomes a simplified ILAS BIPRU firm after 1 December 2009 and before 1 October 2010 the FSA will consider as part of that firm's simplified ILAS waiver application whether it is appropriate to apply the scalar approach described in BIPRU TP 29.3 to the firm in question and if so from what date that approach should apply. Where the FSA agrees that the scalar approach is appropriate, it will incorporate the scalar into the terms of the firm's simplified ILAS waiver.