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Application provision

3.1 In this Chapter,

  1. (1) 3.2 applies where a financial conglomerate notification has been issued in respect of a financial conglomerate of which a firm is a member; and
  2. (2) 3.3, 3.4 and 3.5 apply where a PRA financial conglomerate notification has been issued in respect of a financial conglomerate of which a firm is a member.

3.1

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In this Chapter,

  1. (1) 3.2 applies where a financial conglomerate notification has been issued in respect of a financial conglomerate of which a firm is a member; and
  2. (2) 3.3, 3.4 and 3.5 apply where a PRA financial conglomerate notification has been issued in respect of a financial conglomerate of which a firm is a member.

3.2

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firm must at all times have capital resources of such an amount and type that results in the capital resources of the financial conglomerate being adequate.

Additional Notes


[Note: Art (6)2 of the Financial Groups Directive]

3.3

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A firm must have capital resources of an amount and type that ensures that the conglomerate capital resources of that financial conglomerate at all times equal or exceed its conglomerate capital resources requirement.

Additional Notes


[Note: Art 6(2) of the Financial Groups Directive]

3.4

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  1. (1) Subject to 3.5, the definitions of conglomerate capital resources and conglomerate capital resources requirement that apply for the purposes of 3.3 are the definitions from whichever of Part 1 or Part 2 of Annex 2 the firm has indicated to the PRA it will apply. 
  2.       [Note: Art 6(4) of the Financial Groups Directive]
  3. (2) The firm must indicate to the PRA in advance which Part of Annex 2 it intends to apply.

3.5

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If a firm is subject to a requirement that prescribes the capital adequacy calculation by reference to one or other of Parts 1 and 2 of Annex 2, the definitions of conglomerate capital resources and conglomerate capital resources requirement that apply for the purposes of 3.3 are the definitions from whichever of Part 1 or Part 2 of Annex 2 is specified in the requirement.

Additional Notes


[Note: paragraph 3 of Annex I of the Financial Groups Directive]