Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to:

1. (1) a CRR firm in relation to its;
1. (a) UK activities;
2. (b) passported activities carried on from a branch in another EEA State; and
3. (c) other activities wherever they are carried on, in a prudential context; and
2. (2) a third country CRR firm in relation to its activities carried on from an establishment in the UK.

1.2

This Part applies:

1. (1) in relation to regulated activities;
2. (2) in relation to the regulated activity, specified in Article 14 of the Regulated Activities Order (Dealing in investments as principal), disregarding the exclusion in Article 15 of the Regulated Activities Order (Absence of holding out etc.);
3. (3) in relation to ancillary activities and (in relation to MiFID business) ancillary services;
4. (4) in relation to the carrying on of unregulated activities in a prudential context; and
5. (5) taking into account activities of other members of a group of which the firm is a member.

1.3

(1) In this Part, the following definitions shall apply:

accounting reference date

means

1. (1) (in relation to a body corporate incorporated in the UK under the Companies Acts) the accounting reference date of that body corporate determined in accordance with section 391 of the Companies Act 2006; or
2. (2) (in relation to any other body) the last day of its financial year.

buy-out

means that part of an employee’s variable remuneration:

1. (a) agreed in any contracts relating to the commencement of employment with, or provision of services to, a new firm; and
2. (b) the aggregate value of which is less than or equal to such unvested variable remuneration:
1. (i) in the employee’s contracts relating to the employee’s employment with, or provision of services to, a previous firm, and
2. (ii) which terminated when the employee left employment with, or ceased to provide services to, the previous firm.

buy-out notice

means the information provided by a firm to a previous firm in accordance with 15A.5.

consolidation group entity

means an institution or financial institution which is, in relation to a CRR firm responsible for consolidation:

1. (1) the CRR firm responsible for consolidation;
2. (2) a subsidiary of the CRR firm responsible for consolidation; or
3. (3) a subsidiary of the EEA parent financial holding company or EEA parent mixed financial holding company by which the CRR firm responsible for consolidation is controlled.

CRR firm responsible for consolidation

means a CRR firm which is either:

1. (1) an EEA parent institution; or
2. (2) controlled by an EEA parent financial holding company or by an EEA parent mixed financial holding company and to which supervision on a consolidated basis by the PRA applies in accordance with Article 111 of CRD.

high earner

means an employee (of a firm or of any consolidation group entity) whose total annual remuneration is €1 million or more per year or its equivalent in another currency determined by reference to the conversion rate applicable to the corresponding High Earners Report under Chapter 18.

High Earners Report

means the report by which a firm provides to the PRA the information required in Chapter 18.

material risk taker

has the meaning given in 3.1.

Material Risk Takers Regulation

means Commission Delegated Regulation (EU) No 604/2014 of 4 March 2014 supplementing Directive 2013/36/EU of the European Parliament and of the Council with regard to regulatory technical standards with respect to qualitative and appropriate quantitative criteria to identify categories of staff whose professional activities have a material impact on an institution’s risk profile.

private person

has the meaning given by regulation 3 of the Financial Services and Markets Act 2000 (Rights of Action) Regulations 2001.

reduction notice

means a notice provided to a firm by a previous firm in accordance with 15A.9(3).

Remuneration Benchmarking Information Report

means the report by which a firm provides to the PRA the information required in Chapter 17.

remuneration requirements

means the requirements in 6 to 15A.

remuneration statement

means a statement provided to an employee by a previous firm in accordance with 15A.7.

share

means the investment specified in Article 76 of the Regulated Activities Order (Shares etc).

total assets

means:

1. (1) in relation to a CRR firm or an EEA bank, its total assets as set out in its balance sheet on the relevant accounting reference date; and
2. (2) in relation to a third country CRR firm, the total assets of the third country CRR firm as set out in its balance sheet on the relevant accounting reference date that cover the activities of the branch operation in the UK.

(2) In this Chapter, references to rules in 15 in relation to a firm shall be read on the basis that references to employment with or the provision of services to the firm, include references to employment with or the provision of services to a previous firm to which the buy-out relates.

[Note: CRD]

1.4

Unless otherwise defined, any italicised expression used in this Part and in the CRD or CRR has the same meaning as in the CRD or CRR.

[Note: CRD and CRR]