Financial Services (Investment and Fiduciary Services)
FINANCIAL SERVICES (CAPITAL ADEQUACY OF INVESTMENT FIRMS) REGULATIONS 2007 of those amounts has already been included in paragraph (a) as one of the items in regulation 7(b) or (j) of those Regulations;
subordinated loan capital or the items referred to in sub- regulation (7), subject to the conditions set out in sub- regulations (4) and (5) and in regulation 10;
illiquid assets as specified in regulation 11.
The subordinated loan capital referred to in sub-regulation (3)(c) shall–
have an initial maturity of at least two years;
be fully paid up and the loan agreement shall not include any
clause providing that in specified circumstances (other than the winding-up of the investment firm) the debt will become repayable before the agreed repayment date, unless the Authority approves the repayment;
be such that neither its principal nor the interest on it may be repaid if such repayment would mean that the own funds of the investment firm would then amount to less than 100% of that investment firm’s overall requirements.
The subordinated loan capital referred to in sub-regulation (3)(c) shall
not exceed a maximum of 150% of the original own funds left to meet the requirements calculated in accordance with regulations 17 and 24 to 28 and Schedules 1 to 6 and shall approach that maximum in such circumstances as are acceptable to the Authority.
The Authority may authorise an investment firm to replace
subordinated referred to in
loan capital referred to in sub-regulation (3)(c) regulation 7(1)(d) to (g) of the FSCACI Regulations.
(7) An investment firms shall report to the Authority all repayments on a subordinated loan capital as soon as its own funds fall below 120% of its overall capital requirements.
Subordinated loan capital.
10.(1) The Authority may authorise an investment firm to exceed the ceiling for subordinated loan capital set out in Regulation 9(5) if it considers it prudentially adequate to do so.
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Repealed Subsidiary 2007/002