qualifying capital item

9(in UPRU) means that part of a firm's capital which has the following characteristics:

1. (a) it is freely available to the firm to cover normal banking or other risks where revenue or capital losses have not yet been identified;
2. (b) its existence is disclosed in internal accounting records; and
3. (c) its amount is determined by the management of the firm and verified by independent auditors, and is made known to, and is monitored by, FSA.

Note: verification by internal auditors will suffice until such time as EU provisions making external auditing mandatory have been implemented.