GENPRU 2 Annex 6 Capital resources table for a BIPRU investment firm with a waiver from consolidated supervision

Core tier one capital

(A)

Permanent share capital

GENPRU 2.2.83 R

Profit and loss account and other reserves (taking into account material interim net losses)

GENPRU 2.2.85 R to 2.2.90

Eligible partnership capital

GENPRU 2.2.93 R; GENPRU 2.2.95 R

Eligible LLP members' capital

GENPRU 2.2.94 R; GENPRU 2.2.95 R

Sole trader capital

None

share premium account

GENPRU 2.2.101 R

Externally verified interim net profits

GENPRU 2.2.102 R

Hybrid capital1

Stage B11

GENPRU 2.2.115A R to GENPRU 2.2.117B R1

(B1)1

1Stage B2

GENPRU 2.2.115D R to GENPRU 2.2.117B R

(B2)

Stage C1

GENPRU 2.2.115F R to GENPRU 2.2.117B R1

(C)1

Total tier one capital before deductions = A + B1 + B2 + C1

(D)

Deductions from tier one capital

(E)

Investments in own shares

None

(Part 1 of stage E)

Intangible assets

GENPRU 2.2.155 R

Excess of drawings over profits for partnerships, limited liability partnerships and sole traders

GENPRU 2.2.100 R; there is no related text for sole traders

Net losses on equities held in the available-for-sale financial asset category

GENPRU 2.2.185 R

(Part 1 of stage E)

(For certain limited purposes only certain additional deductions are made here. This line does not include material holdings.)

GENPRU 2.2.239R (2) to GENPRU 2.2.239R (4)

Material holdings falling into Note (4)

Note (4) of Part 2 of this table; GENPRU 2.2.208 R to GENPRU 2.2.215 R

(Part 2 of stage E)

(For certain limited purposes only certain additional deductions of material holdings are made here)

Note (5) of Part 2 of this table; GENPRU 2.2.239R (2) to GENPRU 2.2.239R (4)

(Part 3 of stage E)

Total tier one capital after deductions = D-E

(F)

Upper tier two capital

(G)

Perpetual cumulative preference shares

GENPRU 2.2.159 R to GENPRU 2.2.181 R

Perpetual subordinated debt

See previous entry

Perpetual subordinated securities

See previous entry

Revaluation reserves

GENPRU 2.2.185 R

General/collective provisions

GENPRU 2.2.187 R to GENPRU 2.2.189 R

Surplus provisions

GENPRU 2.2.190 R to GENPRU 2.2.193 R

Lower tier two capital

(H)

Fixed term preference shares

GENPRU 2.2.159 R to GENPRU 2.2.174 R; GENPRU 2.2.194 R to GENPRU 2.2.196 R

Long term subordinated debt

See previous entry

Fixed term subordinated securities

See previous entry

Total tier two capital = G+H

(I)

Deductions from tier two capital

(J)

(For certain limited purposes only certain additional deductions are made here)

Note (5) of Part 2 of this table; GENPRU 2.2.239R (2) to GENPRU 2.2.239R (4)

Total tier two capital after deductions = I - J

(K)

Total tier one capital plus tier two capital = F+K

(L)

Deductions from the totals of tier one and two

(M)

Material holdings falling into Note (5)

Note (5) of Part 2 of this table; GENPRU 2.2.208 R to GENPRU 2.2.215 R

(Part 1 of stage M)

Contingent liabilities

Note (6) of Part 2 of this table

Expected loss amounts and other negative amounts

GENPRU 2.2.236 R

Securitisation positions

GENPRU 2.2.237 R

Reciprocal cross-holdings

GENPRU 2.2.217 R to GENPRU 2.2.220 R

(Part 2 of stage M)

Total tier one capital plus tier two capital after deductions = L-M

(N)

In calculating whether a firm's capital resources exceed its capital resources requirement:

• the credit risk capital component, the operational risk capital requirement (if applicable) and the counterparty risk capital component; or
• the base capital resources requirement;

as the case may be, must be deducted here.

Upper tier three

(O)

Short term subordinated debt

GENPRU 2.2.241 R to GENPRU 2.2.245 R

Lower tier three

(P)

Net interim trading book profit and loss

GENPRU 2.2.246 R to GENPRU 2.2.249 R

Total tier three capital=O+P

(Q)

Total capital before deductions = N+Q

(R)

Deductions from total capital

(S)

Illiquid assets

GENPRU 2.2.259 R to GENPRU 2.2.260 R

Free deliveries

BIPRU 14.4

Total capital after deductions = R-S

(T)

In calculating whether a firm's capital resources exceed its capital resources requirement, the market risk capital requirement, the concentration risk capital component and (if applicable) the fixed overheads requirement must be deducted here.

Note (1): Where the table refers to related text, it is necessary to refer to that text in order to understand fully what is included in the descriptions of capital items and deductions set out in the table.

Note (2): If the amount calculated at:

• stage N less the deductions in respect of the capital resources requirement made immediately following stage N; or
• stage T less the deductions in respect of the capital resources requirement made immediately following stages N and T;

is a negative number the firm's capital resources are less than its capital resources requirement.

Note (4): The material holdings that must be deducted at part 2 of stage E are material holdings issued by undertakings which would have been members of the firm's UK consolidation group or non-EEA sub-group if the firm did not have an investment firm consolidation waiver if:

(1)

in relation to a BIPRU investment firm, the holding forms part of the undertaking's tier one capital resources; or

(2)

(subject to (3)) in relation to any other undertaking, the holding would form part of the undertaking's tier one capital resources if:

(a)

that undertaking were a BIPRU firm with a Part IV permission; and

(b)

it had carried on all its business in the United Kingdom and had obtained whatever permissions for doing so are required under the Act; or

(3)

in relation to any undertaking not falling within (1) and for which the methodology in (2) does not give an answer, the holding would form part of its tier one capital resources if the undertaking were a BIPRU firm of the same category as the firm carrying out the calculation under this Annex.

Note (5): The material holdings that must be deducted by a firm at part 3 of stage E and at stage J or at Part 1 of stage M are material holdings issued by undertakings which would have been members of that firm's UK consolidation group or non-EEA sub-group if the firm did not have an investment firm consolidation waiver and which do not fall into Note (4).

Note (6): The contingent liabilities that must be deducted by a firm at Part 1 of stage M are any contingent liabilities which the firm has in favour of investment firms, financial institutions, asset management companies and ancillary services undertakings which would have been members of the firm's UK consolidation group or non-EEA sub-group if the firm did not have an investment firm consolidation waiver.