5
Representative of firms’ characteristics
5.1
A firm should consider the impact of potential new business on capital required and available capital in their capital assessment. Any contract that a firm is legally obliged to renew should be considered part of a firm's existing liabilities and not treated as new business.
- 20/11/2015
5.2
Where a firm has not already closed to new business, the capital assessment should be made on the basis that a firm closes to new business after an appropriate period.
- 20/11/2015
5.3
Where the capital assessment assumes that a firm may move capital from one part of its business to another across legal or geographical boundaries, the firm should explain how it would satisfy itself that it could achieve the necessary capital movements in times of distress and why such items are free from restriction on their transferability. The firm should also consider any associated costs or restrictions in the amount of capital that would be able to be transferred.
- 20/11/2015