Assessment and authorisation of eligible capital instruments

Banks and account-holding securities firms can ask SFMA to assess debt instruments as to their eligibility for inclusion in capital adequacy calculations. Systemically important banks must seek authorisation for certain capital instruments.

This SFMA page gives applicants and supervised institutions a practical view of the assessment and authorisation of eligible capital instruments topic. It explains when a licence, approval, notification or registration may be needed, what information should be prepared, and which changes may require contact with the authority.

SFMA assesses capital quality

Capital, risk and model topics require robust documentation. SFMA expects clear assumptions, governance, validation, internal controls and evidence that the model or instrument is appropriate for the risks and regulatory treatment requested.

Preparing a complete file

Applicants should keep the submission concise but complete: describe the activity, legal structure, people responsible, control framework, financial resources, relevant documents and any cross-border elements. Where uncertainty remains, the issue should be highlighted early rather than left to emerge during review.