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Article 96 - Own funds requirements for investment firms which hold initial capital as laid down in Article 28(2) of Directive 2013/36/EU

Article 96
Own funds requirements for investment firms which hold initial capital as laid down in Article 28(2) of Directive 2013/36/EU

1.For the purposes of Article 92(3), the following categories of investment firm which hold initial capital in accordance with Article 28(2) of Directive 2013/36/EU shall use the calculation of the total risk exposure amount specified in paragraph 2 of this Article:

(a)

investment firms that deal on own account only for the purpose of fulfilling or executing a client order or for the purpose of gaining entrance to a clearing and settlement system or a recognised exchange when acting in an agency capacity or executing a client order;

(b)

investment firms that meet all the following conditions:

(i)

they do not hold client money or securities;

(ii)

they undertake only dealing on own account;

(iii)

they have no external customers;

(iv)

their execution and settlement transactions take place under the responsibility of a clearing institution and are guaranteed by that clearing institution.

2.For investment firms referred to in paragraph 1, total risk exposure amount shall be calculated as the sum of the following:

(a)

points (a) to (d) and (f) of Article 92(3) after applying Article 92(4);

(b)

the amount referred to in Article 97 multiplied by 12,5.

3.Investment firms referred to in paragraph 1 are subject to all other provisions regarding operational risk laid down in Title VII, Chapter 3, Section II, Sub-section 1 of Directive 2013/36/EU.

Official text · consolidated version 19/07/2016 (no longer in force) Open full page ↗
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