General Prudential sourcebook Chapter Capital
Release Dec 017 www.handbook.fca.org.uk GENPRU /
GENPRU : Capital Annex 4 Capital resources table for a BIPRU firm deducting material holdings Core tier one capital Hybrid capital Permanent share capital GENPRU..83 R Profit and loss account and GENPRU..85 R to..90 other reserves (taking into account material interim net losses) Eligible partnership capital Eligible LLP members' capital Sole trader capital Share premium account Externally verified interim net profits GENPRU..93 R; GENPRU..95 R GENPRU..94 R; GENPRU..95 R None GENPRU..101 R GENPRU..10 R Stage B1 GENPRU..115A R to GENPRU (B1)..117B R Stage B GENPRU..115D R to GENPRU (B)..117B R Stage C GENPRU..115F R to GENPRU (C)..117B R Total tier one capital before deductions = A + B1 + B + C Deductions from tier one capital Investments in own shares Intangible assets GENPRU..100 R; there is no re- lated text for sole traders Excess of drawings over profits for partnerships, limited liability partnerships and sole traders Net losses on equities held in the available-for-sale financial asset category None GENPRU..155 R GENPRU..185 R (For certain limited purposes GENPRU..39R () to GENPRU only certain additional deduc-..39r (4) tions are made here) Total tier one capital after deductions = D-E Upper tier two capital Perpetual cumulative preference shares Perpetual subordinated debt GENPRU..159 R to GENPRU..181 R (A) (D) (E) (F) (G) Release Dec 017 www.handbook.fca.org.uk GENPRU Annex 4/1
GENPRU : Capital Annex 4 Lower tier two capital Perpetual subordinated securities Revaluation reserves General/collective provisions Surplus provisions Total tier two capital = G+H Fixed term preference shares Long term subordinated debt Fixed term subordinated securities Deductions from tier two capital GENPRU..185 R GENPRU..187 R to GENPRU..189 R GENPRU..190 R to GENPRU..193 R GENPRU..159 R to GENPRU..174 R; GENPRU..194 R to GENPRU..196 R (For certain limited purposes GENPRU..39R () to GENPRU only certain additional deduc-..39r (4) tions are made here) Total tier two capital after deductions = I - J Total tier one capital plus tier two capital = F+K Deductions from the totals of tier one and two Material holdings GENPRU..08 R to GENPRU..15 R Expected loss amounts and GENPRU..36 R (Part 1 of stage M) other negative amounts Securitisation positions GENPRU..37 R Reciprocal cross-holdings GENPRU..17 R to GENPRU (Part of stage M)..0 R Total tier one capital plus tier two capital after deductions = L-M In calculating whether a firm's capital resources exceed its capital resources requirement: (1)the credit risk capital component and the counterparty risk capital component; or ()the base capital resources requirement; as the case may be, must be deducted here. Upper tier three Lower tier three Total tier three capital=o+p Short term subordinated debt Net interim trading book profit and loss Total capital before deductions = N+Q Deductions from total capital GENPRU..41 R to GENPRU..45 R GENPRU..46 R to GENPRU..49 R (H) (I) (J) (K) (L) (M) (N) (O) (P) (Q) (R) (S) GENPRU Annex 4/ www.handbook.fca.org.uk Release Dec 017
GENPRU : Capital Annex 4 Free deliveries BIPRU 14.4 Total capital after deductions (R S) In calculating whether a firm's capital resources exceed its capital resources requirement, the market risk capital requirementand the fixed overheads requirement must be deducted here. (T) Note (1): Where the table refers to related text, it is necessary to refer to that text in order to understand fully what is included in the descriptions of capital items and deductions set out in the table. Note (): If the amount calculated at: (a)stage N less the deductions in respect of the capital resources requirement made immediately following stage N; or (b)stage T less the deductions in respect of the capital resources requirement made immediately following stages N and T; is a negative number the firm's capital resources are less than its capital resources requirement. Release Dec 017 www.handbook.fca.org.uk GENPRU Annex 4/3