Part

Related Party Transaction Risk

Chapter

Application and Definitions

Printed on: 29/04/2024

Rulebook at: 17/09/2021

1

Application and Definitions

1.1

This Part applies to:

  1. (1) a UK bank;
  2. (2) a building society;
  3. (3) an overseas firm that:
    1. (a) [deleted.]
    2. (b) has a Part 4A permission that includes permission to carry out accepting deposits; and
  4. (4) a CRR consolidation entity as if it were a firm.
  • 17/09/2021

1.2

In this Part the following definitions shall apply:
means in relation to a natural person (“A”):
      1. (a) A’s spouse or civil partner;
      2. (b) any other person with whom A lives as partner in an enduring family relationship;
      3. (c) A’s children or step-children;
      4. (d) any children or step-children of a person within (b) (and who are not children or step-children of A) who live with A and have not attained the age of 18; and
      5. (e) A’s parents.
means in relation to a firm:
      1. (a) any person that it controls;
      2. (b) its affiliated companies;
      3. (c) its and its affiliated companies’ controllers;
      4. (d) its and its affiliated companies’ directors;
      5. (e) its and its affiliated companies’ senior management;
      6. (f) its and its affiliated companies’ key employees;
      7. (g) close family members of any natural person listed in (a) to (f) above;
      8. (h) direct and related interests of any person listed in (a) to (g) above, which includes a commercial entity in which a member of the management body or any of their close family members:
        1. (i) has a qualifying holding of 10% or more of capital or of voting rights;
        2. (ii) exercises significant influence;
        3. (iii) holds a senior management position; or
        4. (iv) is a member of management body; and
      9. (i) any person that would fall into (a) to (h) above after the relevant transaction has occurred.

[Note: Art. 88(1) of the CRD]

means any transaction or arrangement including:
      1. (a) any arrangement or circumstance that gives rise to or varies an on-balance sheet or off-balance sheet asset or liability (whether contingent or otherwise);
      2. (b) dealings such as service contracts, as set acquisitions and disposals, construction contracts, lease agreements, derivative transactions, borrowings and write-offs.
  • 29/12/2020