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Repealed by LN. 2013/198 as from 1.1.2014 - page 18 / 94

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1989-47

Financial Services (Investment and Fiduciary Services)

Repealed Subsidiary 2007/002

FINANCIAL SERVICES (CAPITAL ADEQUACY OF INVESTMENT FIRMS) REGULATIONS 2007 Calculation of risk-weighted exposure.

13.(1) An institution which, for the purposes of Schedule 2, calculates risk- weighted exposure amounts in accordance with the provisions of regulations 34 to 39 of the Financial Services (Capital Adequacy of Credit Institutions) Regulations 2007, the following shall apply for the purposes of the calculation provided for in point 36 of Part I of Schedule 7 of those Regulations−

(a)

value adjustments made to take account of the credit quality of the counter party may be included in the sum of value adjustments and provisions made for the exposures indicated in Schedule 2;

(b)

subject to the approval of the Authority, if the credit risk of the counter party is adequately taken into account in the valuation of a position included in the trading book the expected loss amount for the counter party risk exposure shall be zero.

(2) For the purposes of sub-regulation (1)(a), such value adjustments shall not be included in own funds other than in accordance with sub-regulation (1).

(3)

For

the

purposes

of

this

regulation,

regulations

92

and

93

of

the

FSCACI Regulations shall apply.

Provisions against risks.

14.(1) An investment firm shall, at all times, have own funds amounting to or exceeding the capital requirements, calculated in accordance with the methods and options in

  • (a)

    regulations 24 to 28 and Schedules 1, 2 and 6 and, where appropriate, Schedule 5, for their trading-book business and points 1 to 4 of Schedule 2 for their non-trading book business;

  • (b)

    schedules 3 and 4 and, where appropriate, Schedule 5, for all of their other business activities.

(2) An investment firm may apply to the Authority to be authorised to calculate the capital requirements for its trading book business in accordance with regulation 23(a) of the FSCACI Regulations and paragraphs 6, 7, and 9 of Schedule 2 where the size of the trading book business

(a)

does not normally exceed 5% of its total business;

© Government of Gibraltar (www.gibraltarlaws.gov.gi)

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