• PRU 10.3 PRU 10.3 IRAP

    • PRU 10.3.1

      This Section applies to an Authorised Person in Category 123A3B3C or 5.

    • PRU 10.3.2

      (1) An Authorised Person must establish and maintain an IRAP which details the processes and procedures by which the firm will identify, assess, aggregate and monitor the risks faced by it.
      (2) The firm must conduct the IRAP assessment at least annually giving due regard to the Guidance in Section A11.1 of App11.
      (3) The IRAP assessment conducted by the firm pursuant to (2) must be approved by its Governing Body and then submitted to the Regulator within four months from the end of the firm's financial year.
      (4) In addition to (2), the firm must conduct an IRAP assessment:
      (a) whenever there is material change to the business, strategy, nature or scale of the activities of the firm which may have a significant impact on its risk profile or adequacy of its Capital Resources or Adjusted Capital Resources, as applicable; or
      (b) as and when required by the Regulator.
      (5) An IRAP assessment conducted by the firm pursuant to (4) must be approved by its Governing Body and then submitted to the Regulator within two months, or such other period as may be specified by the Regulator, from the date of such material change or requirement.

    • PRU 10.3.3

      The results of an IRAP assessment must be documented by the Authorised Person in writing and include details of:

      (a) the risks identified;
      (b) the firm's strategies and plans to deal with those risks;
      (c) the firm's assessment of the adequacy of its Capital Requirement as calculated under these Rules to address all the risks identified by its IRAP;
      (d) the details of any stress testing and scenario analysis carried out and the resultant impact on the Capital Requirement; and
      (e) any other relevant information, giving due regard to the Guidance in App11.

    • PRU 10.3.4

      An Authorised Person must retain the records of an IRAP assessment for at least six years.