Prudential Regulation Authority Rulebook

The amount of indirect holdings to be deducted from Common Equity Tier 1 items as required in points (f), (h) and (i) of Article 36(1) of the CRR shall be calculated in one of the following ways:

1. (a) according to the default approach set out in Article 15d;
2. (b) with the permission of the competent authority, and subject to the institution demonstrating that the approach used in Article 15d is excessively burdensome, according to the structure-based approach described in Article 15e. The structure-based approach described in Article 15e shall not be used by institutions for calculating the amount of those deductions in relation to investments in intermediate entities referred to in Article 15a(1)(d) and (e).

[Note: This rule corresponds to Article 15c of Part 2 of Regulation (EU) No 241/2014 as it applied immediately before revocation by the Treasury.]

[Note: Article 15c(b) is a permission under section 144G and 192XC of FSMA to which Part 8 of the Capital Requirements Regulations applies]