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Application provision

1.1 The changes to this rule are effective from 23:00 on 31/12/2020.

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) [deleted.]
  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.

2.1

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

A firm must:

  1. (1) when relying on a third party for the performance of operational functions which are critical for the performance of relevant services and activities on a continuous and satisfactory basis, ensure that it takes reasonable steps to avoid undue additional operational risk; and
  2. (2) not undertake the outsourcing of important operational functions in such a way as to impair materially:
    1. (a) the quality of its internal control; and
    2. (b) the ability of the PRA to monitor the firm’s compliance with all obligations under the regulatory system and, if different, of a competent authority to monitor the firm’s compliance with all obligations implemented pursuant to MiFID II.

Additional Notes


[Note: Article 16(5) first paragraph of MiFID II]

2.1A

31/12/2020

The changes to this rule are effective from 23:00 on 31/12/2020.

A MiFID investment firm must extend the arrangements and meet the requirements of the Articles 30, 31 Outsourcing Requirements, so they apply with respect to other matters on the following basis: 

  1. (1) references to “authorisation” under MiFID II are references to authorisation under section 31(2) of the Act;
  2. (2) references to “obligations” implemented pursuant to MiFID II are references to a firm’s obligations under the regulatory system
  3. (3) references to “investment services and activities” are references to relevant services and activities;
  4. (4) references to “client” includes anyone who is a client; and 
  5. (5) references to “competent authority” are references to the PRA or the FCA acting other than in the capacity of a competent authority for the purposes of MiFID II or CRR

 

2.1B

03/01/2018

A firm that is not a MiFID investment firm must comply with the Articles 30, 31 Outsourcing Requirements on the basis set out in 2.1A and as if references to “investment firm“ refer to a firm.