Financial Services (Investment and Fiduciary Services)
Repealed Subsidiary 2007/002
FINANCIAL SERVICES (CAPITAL ADEQUACY OF INVESTMENT
FIRMS) REGULATIONS 2007 houses and exchanges shall be treated as exposures to credit institutions and investment firms.
(2) Regulation 91(1) to (7) of the FSCACI Regulations shall apply, in accordance with Regulations 3 and 18 to 23, to an investment firm calculating risk-weighted exposure amounts, for the purposes of Schedule 2, in accordance with Regulations 34 to 39 of the FSCACI Regulations, or using the advanced measurement approach as specified in Regulations 55 of those Regulations for the calculation of its capital requirements for operational risk.
Transitional and exemptions provisions
36.(1) The Authority may permit an investment firm to exceed the limits on large exposures in Regulations 64 of the FSCACI Regulations.
(2) Any calculation
excesses need not be included by of capital requirements exceeding
such limits, as
regulation 23(b) of those Regulations.
(3) The discretion in this regulation may be used until 31 December 2014 or the date of coming into force of any modifications consequent on the treatment of large exposures, pursuant to article 119 of the recast Directive whichever is the earlier.
(4) In order to exercise the discretion in sub-regulation (3), the following conditions shall be met–
the investment firm provides investment services or investment activities related to the financial instruments listed in sub- regulation (16);
the investment firm does not provide such investment services or undertake such investment activities for, or on behalf of, retail clients;
breaches of the limits in this regulation arise in connection with exposures resulting from contracts which are financial instruments listed in paragraph (a) and relate to commodities or underlyings within the meaning of sub-regulation (16)(e) and are calculated in accordance with Schedules 3 and 4 of the FSCACI Regulations or from contracts concerning the delivery of commodities or emission allowances;