A reminder that following the expiry of a transitional provision on 31 October, BIPRU 12.2 (‘Adequacy of liquidity resources’) now also applies to a non-ILAS BIPRU firm (see Regulatory Roundup 4 for details).
For such firms the Overall Liquidity Adequacy Rule (OLAR) has come into force. During the transitional period a non-ILAS BIPRU firm was instead subject to the Overall Financial Adequacy Rules set out in GENPRU 1.1.26.As a result the self sufficiency requirement will now apply. If a firm wants to rely on other entities within a group then an application for an intra-group liquidity modification will need to be applied for.
For the avoidance of doubt, although BIPRU 12.2 now comes into play, BIPRU 12.5 to 12.7 and BIPRU 12.9 do not apply to a non-ILAS BIPRU firm.
Please refer to Regulatory Roundup 2 for the need for non-ILAS BIPRU firms to submit FSA055 for the year to 31 December.
