Financial Services (Investment and Fiduciary Services)
Repealed Subsidiary 2007/002
FINANCIAL SERVICES (CAPITAL ADEQUACY OF INVESTMENT
FIRMS) REGULATIONS 2007 (2) The Authority shall not grant an authority under sub-regulation (1) if the total of the subordinated loan capital and that referred to in regulation 9(6) does not exceed–
200% of the original own funds left to meet the requirements calculated in accordance with regulations 17 and 24 to 28 and Schedules 1 and 3 to 6; or
250% of the same amount where an investment firm deducts the item set out in regulation 9(3)(d) when calculating its own funds.
(3) The Authority may authorise the ceiling for subordinated loan capital set out in regulation 9(5) to be exceeded by a credit institution, if it considers it prudentially adequate to do so.
(4) The Authority shall not grant approval under sub-regulation (3) if the total of the subordinated loan capital and that referred to in regulation 7(1)(d) to (g) of the FSCACI Regulations exceed 250 % of the original own funds left to meet the requirements calculated in accordance with regulations 24 to 28 and Schedules I and 3 to 6.
(1) Illiquid assets referred to in regulation 9(3)(d) shall include
tangible fixed assets, except to the extent that land and buildings may be allowed to count against the loans which they are securing;
holdings in and subordinated claims on credit or financial institutions which may be included in the own funds of those institutions provided that they have not been deducted under regulation 7(1)(k) to (p) of the FSCACI Regulations or under sub-regulation (d) below;
holdings and other investments in undertakings other than credit or financial institutions which are not readily marketable;
deficiencies in subsidiaries;
deposits made which are not available for repayment within 90 days and which do not include payments in connection with margined futures or options contracts;