Some BIPRU firms have been experiencing problems in the completion of their FSA003 data return (capital adequacy).

The FSA003 now contains lines 142 and 143 in relation to capital planning buffers (CPB). The return cannot be validated without these data elements being completed.

A CPB is defined as the amount of capital, in addition to Pillar 2 calculated requirements, that a firm should hold in order to absorb losses or meet minimum regulatory requirements at all times, due to external circumstances.

CPB’s are set by the FSA on the basis of stress tests submitted by a firm. All firms that have been set CPB’s would have already had some dialogue or discussion with the FSA on this subject; this is likely to be relevant to large relationship managed firms or banks.

To overcome the problem, unless the firm has been set a CPB by the FSA lines 142 and 143 should be input as zero.