Repealed Subsidiary 2007/002
Financial Services (Investment and Fiduciary Services)
FINANCIAL SERVICES (CAPITAL ADEQUACY OF INVESTMENT
FIRMS) REGULATIONS 2007 The Authority, where it is the EU consolidated supervisor may
recognise the validity of the specific own-funds definitions applicable to the investment firm concerned under regulations 8 to 13 in the calculation of its consolidated own funds.
PART VIII Monitoring and control of large exposures
Monitoring of large exposures.
An investment firm other than one which fulfils the criteria in
regulation 16(2) accordance with Regulations.
or (3) shall monitor regulations 56 to 59,
and control its large 63 to 70 and 75 of
exposures in the FSCACI
(2) An investment firm which calculates the capital requirements for its trading-book business in accordance with Schedules 1 and 2, and, as appropriate, Schedule 5, shall monitor and control its large exposures in accordance with sub-regulation (1) but may take advantage of the variations in regulations 25 to 28.
Exposure to individual clients.
25.(1) An investment firm’s exposures to individual clients which arise on its trading book shall be the aggregate of–
the excess (where positive) of its long positions over its short positions in all the financial instruments issued by a client, with the net position in each of the different instruments being calculated in accordance with Schedule 1;
the net exposure, in the case of the underwriting of a debt or an equity instrument; and
the exposures due to the transactions, agreements and contracts referred to in Schedule 2 with the client calculated in accordance with that Schedule, for the calculation of exposure values.
For the purposes of sub-regulation (1)(b)–
the net exposure shall be calculated by deducting those underwriting positions which are subscribed or sub- underwritten by third parties on the basis of a formal agreement reduced by the factors in paragraph 41 of Schedule 1;