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Repealed by LN. 2013/198 as from 1.1.2014 - page 87 / 94

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Financial Services (Investment and Fiduciary Services)

FINANCIAL SERVICES (CAPITAL ADEQUACY OF INVESTMENT FIRMS) REGULATIONS 2007 SCHEDULE 6

Regulations 9, 10, 14, 15 and 22

Calculating Capital Requirements for Large Exposures

1. The excess referred to in regulation 27(b) shall be calculated by selecting those components of the total trading exposure to the client or group of clients in question which attract the highest specific risk requirements in Schedule 1 or requirements in Schedule 2, the sum of which equals the amount of the excess referred to in regulation 27(a).

2. Where the excess has not persisted for more than 10 days, the additional capital requirement shall be 200 % of the requirements referred to in paragraph 1, on these components.

3. As from 10 days after the excess has occurred, the components of the excess, selected in accordance with paragraph 1, shall be allocated to the appropriate line in column 1 of Table 1 in ascending order of specific risk requirements in Schedule 1 or requirements in Schedule 2. The additional capital requirement shall be equal to the sum of the specific risk requirements in Schedule 1 or the Schedule 2 requirements on these components, multiplied by the corresponding factor in column 2 of Table 1.

Table 1

Excess over the limits (on the basis of a percentage of own funds) Up to 40 %

Factors

200 %

From 40 % to 60 %

300 %

From 60 % to 80 %

400 %

From 80 % to 100 %

500 %

From 100 % to 250 %

600 %

Over 250 %

900 %

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

1989-47

Repealed Subsidiary 2007/002

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