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IPRU-INV 13.9 FINANCIAL RESOURCES TESTS FOR CATEGORY B FIRMS WHOSE PERMISSION INCLUDES ESTABLISHING, OPERATING OR WINDING UP A PERSONAL PENSION SCHEME

Application

IPRU-INV 13.9.-1R

Requirement

IPRU-INV 13.9.1R

A firm1 must meet:

  1. (1)

    financial Resources Test 1 (the Own funds Test) calculated in accordance with section 13.10;

  2. (2)

    financial1 Resources Test 1A (the Adjusted Net current assets Test) calculated in accordance with section 13.111; and

  3. (3)

    financial1 Resources Test 2 (the Expenditure-based Test) calculated in accordance with section 13.121.

IPRU-INV 13.9.1AG

Table 13B is a summary of the financial resources tests1 for a firm1

Table 13B.1 This table forms part of IPRU-INV 13.9.1R1.

SUMMARY OF FINANCIAL RESOURCES FOR CATEGORY B FIRMS

Type of firm

Financial Resources Test 1 Own funds Test

Financial Resources Test 1A

Adjusted Net current assets Test

Financial Resources Test 2

Expenditure-based Test

Rule/section References

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

All category B firms1 that do not hold client money or assets, but are permitted to establish, operate or wind up a personal pension scheme.

£10,000

Adjusted net current assets of £1

Adjusted capital equal to the highest of 6/52 of relevant annual expenditure, £400 per adviser, £10,000

13.10

13.11

13.12.1G1

13.12.2 to

13.12.5A

All Category B firms that hold client money or assets and are permitted to establish, operate or wind up a personal pension scheme.

£10,000

Adjusted net current assets of £1

Adjusted capital equal to the highest of 13/52 of relevant annual expenditure, £400 per adviser, and £10,000

13.10

13.11

13.12.1G

13.12.2 to

13.12.5A