IPRU-INV 13.11 FINANCIAL RESOURCES TEST 1A - ADJUSTED NET CURRENT ASSETS

This section applies to a personal investment firm which is a Category B firm whose permission includes establishing, operating or winding up a personal pension scheme1.

A firm1 must adjust its net current assets as follows:

1. (1)

   exclude assets which cannot be realised or recovered within twelve months;

2. (2)

   exclude amounts receivable from connected persons to the extent that they are not properly secured, except amounts that are deposits referred to in item (11) of table 13.12.3(1) or item (11) in table 13.12.3(2);

3. (3)

   value investments at current market value, using the bid price for a net long position in an investment and the offer price for a net short position in an investment;

4. (4)

   where applicable, deduct any asset in respect of deferred acquisition costs and add back in any liability in respect of deferred income (but exclude from the deduction or addition any asset or liability which will give rise to future cash flows), together with any associated deferred tax.