1

Introduction

1.1

This supervisory statement is relevant to all banks, building societies, and designated investment firms and all PRA-approved or PRA-designated holding companies.   

1.2

This statement sets out the Prudential Regulation Authority’s (PRA’s) expectations about applications relating to:

  1. (a) its approach to consolidation, in particular individual consolidation (CRR Article 9) and the method of consolidation for entities falling within CRR Article 18(5); and
  2. (b) excluding certain entities from consolidation (CRR Article 19(2)).

1.3

This statement should be read in conjunction with the CRR articles listed, the requirements in the Groups Part of the PRA Rulebook and the high-level expectations outlined in The PRA’s approach to banking supervision.[1] For RFBs, as defined in the Financial Services and Markets Act (FSMA), section 142A, or any other PRA-authorised person that is a member of a group containing an RFB, this statement should be read alongside the PRA’s Supervisory Statement 8/16 ‘Ring-fenced bodies (RFBs)’.[2]