FSAssist - FSA Form Instructions

Instructions for completion of Form 95

Ref
Instructions

A
(pages 2,
3 & 4)

List the name of each related undertaking of the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking (as applicable) which is a regulated related undertaking or an ancillary services undertaking.

Pursuant to INSPRU 6.1.18R to INSPRU 6.1.22R, several entities may be combined where these are not material in relation to the insurance group. The firm should list the relevant entities in a note to the return and should be able to demonstrate the contribution of the individual entities to the group calculation.

A1
(page 2)

List the percentage interest in the regulated related undertaking listed in A held by the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking (as applicable).

For the purposes of calculating the percentage interest in accordance with INSPRU 6.1.28R and 6.1.29R, if the interest is not held directly by the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking but by another member of the insurance group, enter the effective percentage interest of the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking in that undertaking (e.g. where a parent has a 50% holding in a subsidiary which in turn has a 50% holding in another subsidiary, the ultimate parent undertaking’s effective percentage interest in the second subsidiary is 25% etc.).

Where the entity is a subsidiary of a subsidiary of the parent undertaking (etc.), indicate (S) after the effective percentage interest. Such an entity should be treated as a subsidiary of the parent undertaking and will be included in the calculations in proportion to the parent undertaking's effective percentage interest (or in full if there is a capital resources deficit) (see INSPRU 6.1.30R and 6.1.31R).

A2
(page 2)

State if the related undertaking listed in A is a regulated insurance entity, pure reinsurer, insurance undertaking that is not a regulated insurance entity, insurance holding company, investment firm, credit institution, financial institution which is not either a credit institution or investment firm, financial holding company, asset management company or ancillary services undertaking.

For related undertakings which are ancillary services undertakings entries should only be made in this column and column D2 on page 2.

B
(page 2)
State the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking's share (i.e multiplied by the percentage in A1) of the individual capital resources requirement of the regulated related undertaking, or the full amount if there is a capital resources deficit. This is the requirement set out in INSPRU 6.1.34R.

C
(page 2)

State the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking's share (or the full amount if there is a capital resources deficit) of the regulated related undertaking's Tier 1 deductions calculated under the sectoral rules that apply to it.

D1
(page 2)

State the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking's share (or the full amount if there is a capital resources deficit) of any inadmissible assets held by the regulated related undertaking (see INSPRU 6.1.60R)

D2
(page 2)

This column should be completed only for related undertakings which are ancillary services undertakings. The entry is the higher of: the book value of the direct or indirect investment by the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking in the ancillary services undertaking; and the ancillary services undertaking's notional capital resources requirement (see INSPRU 6.1.62R to 6.1.64R)

E1
E2
E3
E4
E5
(page 3)

The entries in E1 to E5 should be the book value of the investments of all members of the insurance group in the solo capital resources of each regulated related undertaking listed in A (this represents internal group holdings of the solo capital resources of
each regulated related undertaking to be excluded from group capital resources under INSPRU 6.1.49R, 6.1.51R, 6.1.54R, 6.1.56R and 6.1.58R).

The book value of the group’s investment in core tier one capital resources* should be shown in E1; investments in perpetual non-cumulative preference shares* should be shown in E2; and investments in innovative tier 1 capital resources* should be shown in E3.

The book value of the group’s investment in tier two capital resources should be shown in E4 (upper tier two capital resources*) and E5 (lower tier two capital resources*).

[* these terms should be applied in accordance with INSPRU 6.1.37R to the undertaking in question].

F1
F2
F3
F4
F5
(page 3)

The entries in F1 to F5 should be the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking's share (or the full amount if there is a capital resources deficit) of the components of the solo capital resources of the regulated related undertaking (see INSPRU 6.1.48R(2), 6.1.50R(2), 6.1.53R(2), 6.1.55R(2) and 6.1.57R(2)).

G1
G2
G3
G4
G5
(page 4)

These entries represent the contribution to group capital resources of the regulated related undertaking. G1 is calculated as the difference between column F1 and E1. (G1 can be positive or negative. A negative figure would principally represent goodwill on acquisition).

Similarly G2 is the difference between F2 and E2, G3 is the difference between F3 and E3 etc. (G2, G3, G4 & G5 would normally be positive).

The totals of columns GI, G2 and G3 respectively represent the group's core tier one capital, perpetual non-cumulative preference shares and innovative tier one capital resources (see H1 to H3 on page 1).

The sum of columns G4 and G5 represent the group's tier two capital resources (see H5 and H6).

Parent's
capital
resources
(page 4)

The entries in this line represent the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking's capital resources, after deduction of the book value of the investments taken together of the individual members of the insurance group in those capital resources. The deduction excludes any holding by the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking (as applicable) of its own shares; such holdings are deducted in calculating the parent's tier one capital resources.

H1
H2
H3
H4
(page 1)

H1 to H3 represent the total contribution of the regulated related undertakings and the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking to total group tier one capital. H4 represents the sum of the Tier 1 deductions for all members of the insurance group.

TT1
(page 1)

This entry is total group tier one capital (see stage A of INSPRU 6.1.43R) after application of limits 1, 2 and 3 below:

Limit 1: Total group tier one capital, less innovative tier one capital resources included in total group tier one capital, must account for at least 50% of the group capital resources requirement less any with-profits insurance capital components included in the group capital resources requirement (see INSPRU 6.1.45R(1)(a)).

Limit 2: Core tier one capital resources included in total group tier one capital must account for at least 50% of total group tier one capital (see INSPRU 6.1.45R(1)(c)).

Limit 3: Innovative tier one capital resources included in total group tier one capital must not exceed 15% of total group tier one capital (see INSPRU 6.1.45R(1)(d)).

Any capital item excluded by limit 3 may form part of total group tier two capital (see INSPRU 6.1.46G).

H5
H6
(page 1)

These entries represent the total contribution of the regulated related undertakings and the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking to total group tier two capital.

TT2
(page 1)

This entry is calculated as the sum of H5 and H6 which represents total group tier two capital (stage B in INSPRU 6.1.43R) after application of limits 4 and 5 as follows:

Limit 4: Total group tier two capital must not exceed total group tier one capital (see INSPRU 6.1.45R(1)(e)).
Limit 5: Lower tier two capital resources calculated in accordance with INSPRU 6.1.57R included in total group tier two capital
must not exceed 50% of total group tier one capital (see INSPRU 6.1.45R(1)(f)).

TCR
(page 1)

This entry is calculated as the sum of TT1 and TT2 and represents group capital resources before deductions (stage C in INSPRU 6.1.43R) after application of limit 6 as follows:

Limit 6: Total group tier one capital less innovative tier one capital resources included in total group tier one capital, plus total group tier two capital less any lower tier two capital resources included in total tier two capital must account for at least 75% of the group capital resources requirement less any with-profits insurance capital components included in the group capital resources requirement (INSPRU 6.1.45R(1)(b)).

H7
(page1)

This entry is the sum of columns D1 and D2 on page 2 which represent deductions to be made from total group capital resources in respect of the group's interest in inadmissible assets (see 8.3.59R), and ancillary services undertakings (see INSPRU 6.1.62R).

GCR
(page1)
This entry is calculated as TCR less H7. This represents group capital resources (stage H in INSPRU 6.1.43R).

GCRR
(page 1)
This entry is calculated as the sum of column B on page 2 which represents the group capital resources requirement (INSPRU 6.1.33R).

I
(page 1)
This is calculated as total group capital resources less total group capital resources requirement (GCR – GCRR). This represents the amount by which group capital resources exceed or fail to exceed the group capital resources requirement.

Ref	Instructions
A (pages 2, 3 & 4)	List the name of each related undertaking of the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking (as applicable) which is a regulated related undertaking or an ancillary services undertaking. Pursuant to INSPRU 6.1.18R to INSPRU 6.1.22R, several entities may be combined where these are not material in relation to the insurance group. The firm should list the relevant entities in a note to the return and should be able to demonstrate the contribution of the individual entities to the group calculation.
A1 (page 2)	List the percentage interest in the regulated related undertaking listed in A held by the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking (as applicable). For the purposes of calculating the percentage interest in accordance with INSPRU 6.1.28R and 6.1.29R, if the interest is not held directly by the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking but by another member of the insurance group, enter the effective percentage interest of the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking in that undertaking (e.g. where a parent has a 50% holding in a subsidiary which in turn has a 50% holding in another subsidiary, the ultimate parent undertaking’s effective percentage interest in the second subsidiary is 25% etc.). Where the entity is a subsidiary of a subsidiary of the parent undertaking (etc.), indicate (S) after the effective percentage interest. Such an entity should be treated as a subsidiary of the parent undertaking and will be included in the calculations in proportion to the parent undertaking's effective percentage interest (or in full if there is a capital resources deficit) (see INSPRU 6.1.30R and 6.1.31R).
A2 (page 2)	State if the related undertaking listed in A is a regulated insurance entity, pure reinsurer, insurance undertaking that is not a regulated insurance entity, insurance holding company, investment firm, credit institution, financial institution which is not either a credit institution or investment firm, financial holding company, asset management company or ancillary services undertaking. For related undertakings which are ancillary services undertakings entries should only be made in this column and column D2 on page 2.
B (page 2)	State the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking's share (i.e multiplied by the percentage in A1) of the individual capital resources requirement of the regulated related undertaking, or the full amount if there is a capital resources deficit. This is the requirement set out in INSPRU 6.1.34R.
C (page 2)	State the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking's share (or the full amount if there is a capital resources deficit) of the regulated related undertaking's Tier 1 deductions calculated under the sectoral rules that apply to it.
D1 (page 2)	State the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking's share (or the full amount if there is a capital resources deficit) of any inadmissible assets held by the regulated related undertaking (see INSPRU 6.1.60R)
D2 (page 2)	This column should be completed only for related undertakings which are ancillary services undertakings. The entry is the higher of: the book value of the direct or indirect investment by the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking in the ancillary services undertaking; and the ancillary services undertaking's notional capital resources requirement (see INSPRU 6.1.62R to 6.1.64R)
E1 E2 E3 E4 E5 (page 3)	The entries in E1 to E5 should be the book value of the investments of all members of the insurance group in the solo capital resources of each regulated related undertaking listed in A (this represents internal group holdings of the solo capital resources of each regulated related undertaking to be excluded from group capital resources under INSPRU 6.1.49R, 6.1.51R, 6.1.54R, 6.1.56R and 6.1.58R). The book value of the group’s investment in core tier one capital resources* should be shown in E1; investments in perpetual non-cumulative preference shares* should be shown in E2; and investments in innovative tier 1 capital resources* should be shown in E3. The book value of the group’s investment in tier two capital resources should be shown in E4 (upper tier two capital resources) and E5 (lower tier two capital resources). [* these terms should be applied in accordance with INSPRU 6.1.37R to the undertaking in question].
F1 F2 F3 F4 F5 (page 3)	The entries in F1 to F5 should be the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking's share (or the full amount if there is a capital resources deficit) of the components of the solo capital resources of the regulated related undertaking (see INSPRU 6.1.48R(2), 6.1.50R(2), 6.1.53R(2), 6.1.55R(2) and 6.1.57R(2)).
G1 G2 G3 G4 G5 (page 4)	These entries represent the contribution to group capital resources of the regulated related undertaking. G1 is calculated as the difference between column F1 and E1. (G1 can be positive or negative. A negative figure would principally represent goodwill on acquisition). Similarly G2 is the difference between F2 and E2, G3 is the difference between F3 and E3 etc. (G2, G3, G4 & G5 would normally be positive). The totals of columns GI, G2 and G3 respectively represent the group's core tier one capital, perpetual non-cumulative preference shares and innovative tier one capital resources (see H1 to H3 on page 1). The sum of columns G4 and G5 represent the group's tier two capital resources (see H5 and H6).
Parent's capital resources (page 4)	The entries in this line represent the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking's capital resources, after deduction of the book value of the investments taken together of the individual members of the insurance group in those capital resources. The deduction excludes any holding by the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking (as applicable) of its own shares; such holdings are deducted in calculating the parent's tier one capital resources.
H1 H2 H3 H4 (page 1)	H1 to H3 represent the total contribution of the regulated related undertakings and the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking to total group tier one capital. H4 represents the sum of the Tier 1 deductions for all members of the insurance group.
TT1 (page 1)	This entry is total group tier one capital (see stage A of INSPRU 6.1.43R) after application of limits 1, 2 and 3 below: Limit 1: Total group tier one capital, less innovative tier one capital resources included in total group tier one capital, must account for at least 50% of the group capital resources requirement less any with-profits insurance capital components included in the group capital resources requirement (see INSPRU 6.1.45R(1)(a)). Limit 2: Core tier one capital resources included in total group tier one capital must account for at least 50% of total group tier one capital (see INSPRU 6.1.45R(1)(c)). Limit 3: Innovative tier one capital resources included in total group tier one capital must not exceed 15% of total group tier one capital (see INSPRU 6.1.45R(1)(d)). Any capital item excluded by limit 3 may form part of total group tier two capital (see INSPRU 6.1.46G).
H5 H6 (page 1)	These entries represent the total contribution of the regulated related undertakings and the ultimate insurance parent undertaking or ultimate EEA insurance parent undertaking to total group tier two capital.
TT2 (page 1)	This entry is calculated as the sum of H5 and H6 which represents total group tier two capital (stage B in INSPRU 6.1.43R) after application of limits 4 and 5 as follows: Limit 4: Total group tier two capital must not exceed total group tier one capital (see INSPRU 6.1.45R(1)(e)). Limit 5: Lower tier two capital resources calculated in accordance with INSPRU 6.1.57R included in total group tier two capital must not exceed 50% of total group tier one capital (see INSPRU 6.1.45R(1)(f)).
TCR (page 1)	This entry is calculated as the sum of TT1 and TT2 and represents group capital resources before deductions (stage C in INSPRU 6.1.43R) after application of limit 6 as follows: Limit 6: Total group tier one capital less innovative tier one capital resources included in total group tier one capital, plus total group tier two capital less any lower tier two capital resources included in total tier two capital must account for at least 75% of the group capital resources requirement less any with-profits insurance capital components included in the group capital resources requirement (INSPRU 6.1.45R(1)(b)).
H7 (page1)	This entry is the sum of columns D1 and D2 on page 2 which represent deductions to be made from total group capital resources in respect of the group's interest in inadmissible assets (see 8.3.59R), and ancillary services undertakings (see INSPRU 6.1.62R).
GCR (page1)	This entry is calculated as TCR less H7. This represents group capital resources (stage H in INSPRU 6.1.43R).
GCRR (page 1)	This entry is calculated as the sum of column B on page 2 which represents the group capital resources requirement (INSPRU 6.1.33R).
I (page 1)	This is calculated as total group capital resources less total group capital resources requirement (GCR – GCRR). This represents the amount by which group capital resources exceed or fail to exceed the group capital resources requirement.