Capital Requirements for Investment Firms| London | Bovill presentation: Thursday, 22 February 2018 14:05 – 14:45
Bovill’s Harpartap Singh and Jackie Domanska have presented at the Capital Requirements for Investment Firms Forum 2018, a prominent platform for the discussion of the new EBA Prudential Regime and other key Capital Management regulatory and business challenges addressing Investment Firms.
Their presentation took place on Day two of the event and covered the following topic:
Highlighting Common Issues in Pillar 1 Calculations and Returns
The first thing the FCA tends to look at when it carries out a SREP review is a firm’s Pillar 1 calculations. More often than not the FCA finds errors and this impacts on its assessment of a firm’s individual capital guidance. This session ran through some of the common errors we come across and how to resolve them.
- Pillar 1 Own Funds and deductions
- Fixed overhead requirement and what can be deducted
- Common pitfalls in calculating credit risk and counterparty credit risk
- Identifying a trading book and calculating market risk including general and specific risk
- Large exposures reporting and interaction with Pillar 1