A bit of a last minute question: For the admissibility limits on Peak 1 calculation, the allowable limits are calculated as a % of LTICR + MR + RCR (RCR = 0 for realistic basis firm). My question is: Is the LTICR + RCR subject to a minimum of the BCRR as it is for other calculations? Or does it not matter in this instance? Any help very grateful for at the last minute!!
No, the LTICR + RCR is not subject to a minimum of the BCRR. (If it were, it would allow a higher concentration of assets for smaller firms, which doesn't sound desirable). Further details can be found in INSPRU 2.1.22. But I wouldn't recommend reading this on the day of the exam. Good luck with the exam. Mark
