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

Application

29.1

R

BIPRU TP 29 applies to a simplified ILAS BIPRU firm.

Duration of transitional provisions

29.2

R

BIPRU TP 29 applies from 1 December 2009 until 31 December 2015.1

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 28 February 2012,1 its liquid assets buffer is no less than 30% of the amount of its simplified buffer requirement;

(2)

at all times between 1 March 20121and 30 June 2013,1 its liquid assets buffer is no less than 50% of its simplified buffer requirement; and

(3)

at all times between 1 July 2013 1and 31 December 2015,1 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 has a transitional period until 31 December 2015 1to 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 25 March 2011, 1the FSA will consider as part of that firm's simplified ILAS waiver application how 1to apply the scalar approach described in BIPRU TP 29.3 to the firm in question.The FSA 1will incorporate the scalar into the terms of the firm's simplified ILAS waiver.