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Application provision

1.1 This Part applies to a CRR firm that receives critical services if it fulfils any of the following conditions on 1 January of any year:

  1. (1) the average of the firm’s total assets it was required to report in the previous 36 months in accordance with Chapters 7 and 9 of the Regulatory Reporting Part of the PRA Rulebook exceeds £10bn;
  2. (2) the average of the firm’s safe custody assets it was required to report in the previous 36 months in accordance with SUP 16.14 of the FCA Handbook as amended from time to time exceeds £10bn; or
  3. (3) the average total amount of received sight deposits it was required to report in the previous 36 months in accordance with the ITS on supervisory reporting, or that it would have had to report if the ITS on supervisory reporting had been in force, exceeds £350m.

3.1

01/01/2019

If a firm receives critical services from one of its business units, it must document: 

  1. (1) the details of the critical services; and
  2. (2) the transition arrangements for these critical services in the event of the firm being restructured or resolved.

3.2

01/01/2019

If a firm receives critical services from another party, it must ensure the agreement governing the provision of these services:

  1. (1) does not permit the other party to terminate, suspend or materially alter the services or facilities or the agreement as a result of the deterioration in the financial circumstances or the resolution of the firm or any of its group members; and
  2. (2) entitles the firm to continue to receive those services during the firm’s resolution or restructuring as long as the firm fulfils its payment obligations under the agreement.

3.3

01/01/2019

A firm must ensure the charging structure for the critical services it receives is predictable, transparent and set on arm’s length terms.

3.4

01/01/2019

A firm must ensure access by the firm, the service provider and the PRA to the operational assets supporting critical services is not disrupted in the event of a group member being restructured or resolved.