2
Ancillary own funds
2.1
The PRA does not envisage approving an amount under Own Funds 2.5(1) or a method under Own Funds 2.5(2) unless it is satisfied that the amount approved or determined using the approved method reflects the loss absorbency of the item of ancillary own funds and is based on prudent and realistic assumptions. Therefore, where an item of ancillary own funds has a fixed nominal value the amount of that item that can be included in a firm’s own funds will only be equal to its nominal value where that value appropriately reflects its loss absorbency (see Own Funds 2.7).
- 31/12/2024
2.1A
An item of ancillary own funds must be callable on demand. When firms apply to the PRA for permission to recognise ancillary own funds when determining own funds, they will need to demonstrate that there is no trigger event or restrictions affecting when the item of ancillary own funds can be called.
- 31/12/2024
2.1B
The PRA does not expect firms to treat ancillary own funds as emergency capital to be applied for when a firm is in danger of breaching its SCR. In such a situation, raising basic own funds is likely to be a more appropriate action.
- 31/12/2024
2.2
[deleted]
- 31/12/2024
2.3
[deleted]
- 31/12/2024