Which firms can be identified as O-SIIs?


In line with the Capital Buffers Regulations, the framework outlined in this statement of policy is to be applied in relation to all credit institutions, investment firms, and groups that are headed by UK parent institutions, UK parent financial holding companies, or UK parent mixed financial holding companies within the domestic financial sector at their highest level of consolidation in the United Kingdom.2


  • 2. References in this statement of policy to the designation of a firm as an O-SII should be taken to include the designation of a group of firms at the highest level of consolidation in the UK.


The framework is not applied to: i) third-country branches of overseas firms, and ii) investment firms not regulated by the PRA. The rationale for this is as follows:
(i) The Capital Buffers Regulations do not allow the designation of third country branches of overseas banks operating in the UK as O-SIIs. Therefore, these institutions are not considered for O-SII designation. The PRA, however, includes the activity of UK branches of overseas banks in the denominators used for calculating indicator scores.
(ii) The framework is only applied to those investment firms designated for prudential supervision by the PRA. The Statement of Policy 'Designation of investment firms for prudential supervision by the PRA'3 outlines the PRA's designation policy, which takes into account the criteria of size, substitutability, interconnectedness, and complexity; the same criteria set out in Article 31(1) Capital Buffers Regulations. Therefore, if an investment firm has not been designated for supervision by the PRA, this means that the PRA has assessed that the investment firm is not systemically important. This assessment is sufficient to comply with the O-SII assessment methodology set out in the Capital Buffers Regulations.
(iii) [Deleted]