IFPR reporting instructions - FCA

MIF001 ? Capital

This form applies to both individual FCA investment firms and to consolidation groups. If completed on behalf of a consolidation group, it should be completed on the basis of the consolidated situation and references to FCA investment firm should be taken to refer to the consolidation group.

Basis of completion

Cell A1 asks firms to say if the report is on behalf of a consolidation group.

Cell A2 asks for the FRNs of the firms that form part of the consolidation group.

Capital held

FCA investment firms are required to hold own funds in excess of their total own funds requirement (TOFR). The TOFR includes any additional capital requirement made by or guidance given by the FCA. Own funds held to meet the total own funds requirement must be made up of Common Equity Tier 1 (CET1), Additional Tier 1 (AT1) and Tier 2 (T2) capital. Cell A3 ? Common Equity Tier 1 capital

FCA investment firms should enter the amount of CET1 capital they hold for their own funds. CET1 capital should be calculated in accordance with Article 50 of the UK CRR as applied and modified by Section 3.3 of MIFIDPRU ? Common equity tier 1 capital. This cell must always be completed with a positive number.

Cell A4 ? Additional Tier 1 capital

FCA investment firms should enter the amount of AT1 capital they hold for their own funds. AT1 capital should be calculated in accordance with Article 61 of the UK CRR as applied and modified by Section 3.4 of MIFIDPRU ? Additional tier 1 capital. FCA investment firms are not required to hold/issue AT1 capital. If no AT1 has been issued, or is held, a zero should be entered in this cell.

Cell A5 ? Tier 2 capital

FCA investment firms should enter the amount of T2 capital they hold for their own funds. T2 capital should be calculated in accordance with Article 71 of the UK CRR as applied and modified by Section 3.5 of MIFIDPRU ? Tier 2 capital. FCA investment firms are not required to hold/issue T2 capital. If no T2 has been issued/is held, a zero should be entered in this cell. Capital requirements

Cell A6 ? total annual fixed overheads

The fixed overheads requirement is one quarter of the FCA investment firm's previous financial year's annual fixed overheads after the distribution of profits. The annual fixed overheads should be calculated in accordance with [MIFIDPRU 4.5]. The number entered should be the total annual fixed overheads, not the fixed overheads requirement. If we have varied an FCA investment firm's fixed overheads due to a material change in its business model, that is the figure that should be included here.

Cell A7 ? variation in fixed overheads

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FCA investment firms should select `Y' if we have amended its FOR due to a material change in its business model. An example of a material should could include adding or removing permissions during the reporting year. If this is the case, the number entered into Cell A6 should be the equivalent annual fixed overheads for the FCA investment firm's amended FOR.

Cell A8 ? Permanent minimum requirement (PMR)

FCA investment firms should enter one of the following numbers/select one of the following numbers from the drop down:

? 75 if the firm has a PMR of ?75,000 ? 150 if the firm has a PMR of ?150,000 ? 750 if the firm has a PMR of ?750,000

Where a transitional provision allows an FCA investment firm to substitute an alternative PMR, this figure should reflect its standard requirement (and not the alternative lower figure under the transitional provision).

K-factor requirements ? completed by non-SNI firms only

Where an FCA investment firm does not have permission to carry out the relevant activity, the cell should be left blank.

Cell A9 ? Total K-factor requirement FCA investment firms should enter the total amount of their K-factor requirement. This figure should be the sum of cells A10 to A23. Cell A10 ? K-AUM FCA investment firms should input their K-AUM requirement calculated in accordance with MIFIDPRU [4.7]. Cell A11 ?K-CMH (segregated) FCA investment firms should input their K-AUM requirement for segregated accounts, calculated in accordance with MIFIDPRU [4.8]. A segregated account is defined in in the Handbook Glossary. Cell A12 ?K-CMH (non-segregated) FCA investment firms should input their K-CMH requirement for non-segregated accounts, calculated in accordance with MIFIDPRU [4.8]. A non-segregated account is an account that does not satisfy the conditions to be a segregated account. Cell A13 ? K-ASA FCA investment firms should input their K-ASA requirement calculated in accordance with MIFIDPRU [4.9]. Client orders handled Cell A14 ? K-COH (cash trades) FCA investment firms should input their K-COH for cash trades calculated in accordance with MIFIDPRU [4.10]. Cell A15 ? K-COH (derivative trades) FCA investment firms should input their K-COH requirement calculated in accordance with MIFIDPRU [4.10].

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Daily Trading Flow Cell A16 ? K-DTF (cash trades) FCA investment firms should input their K-DTF requirement for cash trades calculated in accordance with MIFIDPRU [4.15]. Cell A17 ? this cell has been deliberately left blank

Cell A18 ? K-DTF (derivative trades) FCA investment firms should input value of their K-DTF requirement for derivative trades calculated in accordance with MIFIDPRU [4.15]. Cell A19 ? this cell has been deliberately left blank

Cell A20 ? K-NPR (K-factor requirement) FCA investment firms should input the capital requirement calculated for net position risk in accordance with MIFIDPRU [4.12]. Cell A21 ? K-CMG FCA investment firms should input the total capital requirement calculated for K-CMG in accordance with MIFIDPRU [4.13]. The value given shall be the sum of the individual KCMG requirements for each portfolio for which the firm has obtained a K-CMG permission from the FCA. Cell A22 ? K-TCD FCA investment firms should input their total capital requirement calculated for K-TCD in accordance with MIFIDPRU [4.14]. Cell A23 ? K-CON FCA investment firms should input their total capital requirement calculated for K-CON in accordance with MIFIDPRU [5.6]. Transitional requirements Cell A24 ? Transitional requirement

FCA investment firms should enter the current amount of any transitional capital requirement. Note, that where an FCA investment firm changes its permissions during this period, it will no longer be able to take advantage of any transitional provisions that limit its permanent minimum capital requirement. Investment firms will be assessed on being able to meet the full permanent minimum capital requirement and any other additional requirements that may apply before any change in permission is granted.

Cell A25 ? Basis of transitional

FCA investment firms should indicate by reference to the relevant provision in MIPRU which transitional provision or provisions they are relying on for their capital requirement entered in Cell A24.

Additional requirements and guidance

Cell A26 ? Amount of additional capital requirement

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An FCA investment firm may determine, as a result of the ICARA process, that it needs to hold additional capital to that given by the higher of its permanent minimum requirement (PMR), fixed overheads requirement (FOR) or K-factor requirement (KFR) (if appropriate). An FCA investment firm may be required by the FCA to hold an additional amount of capital to that that given by the higher of its PMR, FOR or KFR (if appropriate). In Cell 26, the FCA investment firm should input the higher of these two amounts of capital (to the extent applicable). Cell A27 ? Amount of additional capital guidance The FCA may ask an FCA investment firm that is not an SNI to hold additional capital to ensure that the FCA investment firm does not breach its capital requirements (including any additional capital requirement set). In Cell A27, the FCA investment firm should put the amount of any additional capital guidance it has been given.

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MIF002 - Liquidity

We will calculate the FCA investment firm's basic liquidity requirement based on its annual fixed overheads, as provided in MIF001, and the guarantees provided to clients, as provided in Cell A6 of this return.

This form applies to both individual FCA investment firms and to prudential consolidation groups. Where a prudential consolidation group has a waiver from applying liquidity requirements on a consolidated basis, the investment firms that are within that group must still complete this form on an individual basis.

Basis of completion

Cell A1 asks FCA investment firms to specify the basis on which this report is being completed.

Cell A2 asks for the FRNs of all the FCA investment firms that form part of the consolidation group.

Liquidity

Cell A3 ? Total liquid assets held

Enter the total amount, before applying any haircuts, of liquid assets held that meet the criteria set out in MIFIDPRU [6].

Cell A4 ? Liquid assets post haircuts

Enter the total amount, after applying any haircuts in accordance with MIFIDPRU [6], of liquid assets held that meet the criteria set out in MIFIDPRU [6].

Cell A5 ? Eligible receivables due within 30 days

Where an FCA investment firm is allowed to, and does, count up to 50% of its total eligible receivables due within 30 days as up to one third of its total liquid assets held, it should enter this amount.

Cell A6 ? Guarantees provided to clients

Enter the value of guarantees that have been provided to clients, as determined in accordance with the rules in MIFIDPRU [6].

Cell A7 ? Amount of additional liquidity requirement

An FCA investment firm may determine that it needs to hold additional liquid assets to indicated by one month's FOR.

An FCA investment firm may be required by the FCA to hold additional liquid assets greater than that indicated by one month's FOR.

In Cell A7, the investment firm should enter the amount of any additional liquidity requirement.

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