BIPRU TP 7 Pre CRD capital requirements applying on a solo basis during 2007: UCITS investment firms
1Application |
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7.1 |
R |
This section applies to a BIPRU firm that: |
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(1) |
is a UCITS investment firm; and |
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(2) |
is applying BIPRU TP 3 (Use of IPRU on a solo basis during 2007). |
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Purpose of this section |
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7.2 |
G |
BIPRU TP 3 (Pre CRD capital requirements applying on a solo basis during 2007) says that during 2007 a firm may apply the credit risk requirements of IPRU instead of the ones in BIPRU. For a UCITS investment firm this involves applying the credit risk requirements in chapter 7 of IPRU(INV). This section explains how this is done. |
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Duration of transitional |
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7.3 |
R |
This section applies until 1 January 2008. |
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Drafting approach |
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7.4 |
G |
Chapter 7 of IPRU(INV) does not contain any credit risk rules. Instead it cross refers to the ones in chapter 5 (Interim prudential requirements for former IMRO firms). Therefore this section applies BIPRU TP 6 (Pre CRD capital requirements applying on a solo basis during 2007: Investment management firms). |
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Parts of chapter 7 of IPRU(INV) that apply in 2007 |
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7.5 |
R |
The parts of chapter 7 of IPRU(INV) that do and do not apply during the period that BIPRU TP 3.4R applies are set out in BIPRU TP 7.7R. |
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7.6 |
G |
The table in BIPRU TP 7.7R assumes that the firm is not applying the IRB approach. BIPRU TP 6.31R to BIPRU TP 6.34R (which are applied to a UCITS investment firm by BIPRU TP 7.8R) deal with a firm that does apply the IRB approach. |
7.7 |
R |
Table: Parts of chapter 7 of IPRU(INV) that apply in 2007 This table belongs to BIPRU TP 7.5R |
Chapter 7 rule |
A Y denotes that the provision does apply An N denotes that it does not apply |
Remarks |
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7.1.1 (Application) |
N |
BIPRU TP 7.1R applies instead |
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7.1.2 and 7.1.3 (Guidance on types of UCITS management companies etc) |
Y |
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7.2.1 (General rule about financial resources and financial resources requirements) |
N |
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7.2.2 (Financial resources requirement) |
N |
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7.2.3 (Liquid capital resource requirement) |
13/52 annual audited fixed expenditure requirement |
N |
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Provision of paragraph (2) that says that requirements apply in respect of designated investment business other than when undertaking scheme management activity |
Y |
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Position risk requirement |
N |
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Counterparty risk requirement |
Y |
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Foreign exchange requirement |
N |
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Other assets requirement |
Y |
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7.2.4 to 7.2.5 (Calculation of annual expenditure) |
N |
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7.3 (Method of calculation of financial resources) |
N |
GENPRU 2.2 (Capital resources) applies instead |
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7.4.1 (Application of rules in chapter 5 of IPRU(INV) about qualifying subordinated loans etc) |
N |
The record keeping rules referred to in rule 7.4.1(1)(c) are applied under BIPRU TP 23 (Record keeping transitionals) |
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7.4.2 (Application of rules in chapter 5 of IPRU(INV) about large exposures) |
Y |
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7.5 (Financial notification) |
N |
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7.6 (Records) |
N |
Applied under BIPRU TP 23 (Record keeping transitionals) |
Application of BIPRU TP 6 |
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7.8 |
R |
BIPRU TP 6 (Pre CRD capital requirements applying on a solo basis during 2007: Investment management firms) applies for the purposes of this section. |