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Application provision

1.1 This Part applies to every firm that is a CRR firm.

1

Application and Definitions

1.1

01/01/2014

This Part applies to every firm that is a CRR firm.

1.2

01/01/2016

In this Part the following definitions shall apply:

third country banking and investment group

means a group that meets the following conditions:

    1. (1) it is headed by a third country undertaking that would be:
      1. (a) an institution;
      2. (b) a financial holding company, or
      3. (c) a mixed financial holding company,
      4. if its head office was in the EEA; and
    2. (2) it is not part of a wider consolidation group.

1.3

01/01/2014

Unless otherwise defined:

  1. (1) any italicised expression used in this Part and in the CRR has the same meaning as in the CRR; and
  2. (2) any italicised expression used in this Part and in the CRD has the same meaning as in the CRD.

2

Methods of Prudential Consolidation

2.1

01/01/2014

  1. (1) In carrying out the calculations in (Part One, Title II, Chapter 2 of the CRR) for the purposes of prudential consolidation, a firm must include the relevant proportion of an undertaking with whom it has an:
    1. (a) Article 12(1) relationship; or 
    2. (b) Article 18(6) relationship.
  2. (2) In 2.1(1), the relevant proportion is such proportion (if any) as stated in a requirement imposed on the firm in accordance with section 55M of FSMA.

Additional Notes


[Note: Art 18(3) and (6) of the CRR]

2.2

01/01/2014

In carrying out the calculations in Part One, Title II, Chapter 2 of the CRR for the purposes of prudential consolidation, a firm (for which the PRA is the consolidating supervisor) must include the proportion of the share of capital held of participations in institutions and financial institutions managed by an undertaking included in the consolidation together with one or more undertakings not included in the consolidation, where those undertakings' liability is limited to the share of capital they hold.

Additional Notes


[Note: Art 18(4) of the CRR]

2.3

01/01/2014

In carrying out the calculations in Part One, Title II, Chapter 2 of the CRR for the purposes of prudential consolidation, a firm must carry out a full consolidation of any undertaking with whom it has an Article 18(5) relationship.

Additional Notes


[Note: Art 18(5) of the CRR]

3

Third Country Banking and Investment Groups

3.1

01/01/2016

This Chapter applies where a firm is subject to a requirement obliging it to comply with 3.2 to 3.4 with respect to a third country banking and investment group of which it is a member.

Additional Notes


[Note: Art 127 of the CRD]

3.2

01/01/2016

A firm must comply with:

  1. (1) those requirements of the CRR that apply to the firm on a consolidated basis; and
  2. (2) rules that apply to the firm on a consolidated basis,

on the basis of the consolidated situation of the third country banking and investment group.

3.3

01/01/2016

3.4

01/01/2016

The scope of the CRR requirements and rules referenced in 3.2 and 3.3 is adjusted:

  1. (1) to remove any provisions disapplying those rules for third country banking and investment groups;
  2. (2) to remove all limitations relating to where a member of the third country banking and investment group is incorporated or has its head office; and
  3. (3) so that the scope covers every member of the third country banking and investment group that would have been included in the scope of those rules if those members had their head offices, and were incorporated, in an EEA State.