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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

03/08/2015

In this Part the following definitions shall apply:

Article 18(6) relationship

means a relationship of one of the following kinds:

    1. (a) where an institution exercises a significant influence over one or more institutions or financial institutions, but without holding a participation or other capital ties in these institutions; or
    2. (b) where two or more institutions or financial institutions are placed under single management other than pursuant to a contract or clauses of their memoranda or articles of association.

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]