Prudential Regulation Authority Rulebook

8.0

This Chapter applies to a BRRD undertaking.

8.1

A CRR firm must report to the PRA immediately any case in which its counterparty in a repurchase transaction or securities or commodities lending or borrowing transaction defaults on its obligations.

8.2

A BRRD undertaking, which is a CRR firm, a financial holding company, a mixed financial holding company or a mixed activity holding company must notify the PRA immediately if its BRRD management body considers that:

1. (1) the assets of the BRRD undertaking are or there are objective elements to support a determination that the assets of the BRRD undertaking will, in the near future, be less than its liabilities;
2. (2) the BRRD undertaking is or there are objective elements to support a determination that the BRRD undertaking will, in the near future, be unable to pay its debts or other liabilities as they fall due; or
3. (3) extraordinary public financial support is required for the BRRD undertaking or the group of which the BRRD undertaking forms part.

8.3

A BRRD undertaking, which is a CRR firm, must notify the PRA immediately if its management body considers that the firm is failing or there are objective elements to support a determination that the firm will, in the near future, fail to satisfy one or more of the threshold conditions, including as a result of the firm having incurred or being likely to incur losses that will deplete all or a significant amount of its own funds.

[Note: Art.81(1) of the BRRD]

8.4

A notification required from a BRRD undertaking under 8.2 or 8.3 must be delivered to the PRA by the method of electronic mail to an address for the usual supervisory contact at the PRA for the BRRD undertaking or its group.