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Application provision

1.1 Unless otherwise stated, this Part applies to a CRR firm

  1. (1) with respect to the carrying on of the following from an establishment in the UK:
    1. (a) regulated activities;
    2. (b) activities that constitute dealing in investments as principal, disregarding the exclusion in article 15 of Regulated Activities Order;
    3. (c) ancillary activities;
    4. (d) in relation to MiFID business, ancillary services; and
    5. (e) unregulated activities in a prudential context
  2. (2) with respect to the carrying on of passported activities by it from a branch in another EEA state;
  3. (3) in a prudential context with respect to activities wherever they are carried on; and
  4. (4) taking into account any activity of other members of a group of which the firm is a member.

1

Application and Definitions

1.1

03/01/2018

Unless otherwise stated, this Part applies to a CRR firm

  1. (1) with respect to the carrying on of the following from an establishment in the UK:
    1. (a) regulated activities;
    2. (b) activities that constitute dealing in investments as principal, disregarding the exclusion in article 15 of Regulated Activities Order;
    3. (c) ancillary activities;
    4. (d) in relation to MiFID business, ancillary services; and
    5. (e) unregulated activities in a prudential context
  2. (2) with respect to the carrying on of passported activities by it from a branch in another EEA state;
  3. (3) in a prudential context with respect to activities wherever they are carried on; and
  4. (4) taking into account any activity of other members of a group of which the firm is a member.

1.1A

29/06/2018

2.1A to 2.1B do not apply to a firm with respect to the carrying on of benchmarking activities except to the extent that they transpose an EU instrument.

1.2

03/01/2018

In this Part, the following definitions shall apply:

Article 21 Skills Requirements 

means requirements and obligations as set out in Article 21(1)(b),(d),(g) (General Organisational Requirements) of the MODR.

other matters

means, in relation to a requirement under the MODR, matters within the scope of 1.1 that are not within the scope of that requirement.

2

Skills, Knowledge and Expertise

2.1A

03/01/2018

A MiFID investment firm must extend the arrangements required by the Article 21 Skills Requirements so they also apply with respect to other matters on the basis that references to “relevant persons” are references to relevant persons.

2.1B

03/01/2018

A firm that is not a MiFID investment firm must comply with the Article 21 Skills Requirements on the basis set out in 2.1A and as if references to “investment firm” refer to a firm.

3

Segregation of Functions

3.2

03/01/2018

A firm must ensure that its senior personnel define arrangements concerning the segregation of duties within the firm and the prevention of conflicts of interest.

Additional Notes


[Note: Art. 88 of the CRD and Art. 9(1) of MiFID II]

4

Awareness of Procedures [deleted chapter]

5

General [deleted chapter]

6

Group Arrangements

6.1

01/01/2016

Where a firm is a member of a consolidation group, the firm must ensure that the risk management processes and internal control mechanisms at the level of the consolidation group of which it is a member comply with the obligations set out in 3.2 on a consolidated basis.

6.1A

30/03/2018

If this Part applies to a firm on a consolidated basis or on a sub-consolidated basis, the firm must carry out consolidation to the same extent and in the same manner as it is required to comply with the obligations laid down in Parts Two to Eight of the CRR on a consolidated basis or sub-consolidated basis.

6.2

01/01/2016

Compliance with the obligations referred to in 6.1 must enable the consolidation group to have arrangements, processes and mechanisms that are consistent and well integrated and that any data relevant to the purpose of supervision can be produced. 

Additional Notes


[Note: Art 109(2) of the CRD]