IFPRU 5.1 Application and purpose
Application
IFPRU 5 applies to a full-scope IFPRU investment firm, unless it is an exempt IFPRU commodities firm.
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Timeline guidanceIFPRU 5 applies to a full-scope IFPRU investment firm, unless it is an exempt IFPRU commodities firm.
A firm may use an AMA in combination with the BIA or TSA, provided it obtains permission from the FCA. In granting such permission, the FCA is required by article 314(3) of the UK CRR1 (Combined use of different approaches) to impose the following conditions when the AMA is used in combination with BIA or TSA:
on the date of first implementation of the AMA, a 'significant' part of the institution's operational risk are captured by that approach; and
the institution to commit to apply the AMA across a 'material' part of its operations within a time schedule approved by the FCA.
For the purposes of these conditions, the FCA considers that:
a "significant" part of operational risk shall be approximately 50% (or more); and
a 'material' part of its operations shall be around 85% (or more).