Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to a BRRD undertaking which is a CRR firm, a financial holding company, a mixed financial holding company or a mixed activity holding company.

1.2

This Part does not apply in relation to:

1. (1) financial arrangements, other than group financial support agreements, including funding arrangements and the operation of centralised funding arrangements, provided that no institution that is party to such arrangements meets the conditions for early intervention; and
2. (2) financial support provided by a BRRD undertaking to a member of its group that experiences financial difficulties if the BRRD undertaking decides to do so on a case-by-case basis and according to group policies if it does not represent a risk for the group.

[Note: Art. 19(2) and (3) of the BRRD]

1.3

In this Part, the following definitions shall apply:

competent authority

means a public authority or body officially recognised by national law which is empowered by national law to supervise institutions as part of the supervisory system in operation in the EEA State concerned or the European Central Bank with regard to the specific tasks conferred on it by Article 4 of Council Regulation (EU) No. 1024/2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions.

conditions for early intervention

means circumstances in which an institution infringes or is likely in the near future to infringe the requirements of the CRR, the CRD, MiFID II or any of Articles 3 - 7, 14 - 17 and 24, - 26 of MiFIR.

EEA consolidating supervisor

means a competent authority responsible under the CRD for the exercise of supervision on a consolidated basis of:

1. (1) an EEA parent institution; or
2. (2) institutions controlled by an EEA parent financial holding company or an EEA parent mixed financial holding company.

EEA parent financial holding company

means a parent financial holding company in an EEA State which is not a subsidiary of an institution authorised in any EEA State or of another financial holding company or mixed financial holding company set up in any EEA State.

EEA parent institution

means a parent institution in an EEA State which is not a subsidiary of another institution authorised in an EEA State or of a financial holding company or mixed financial holding company set up in any EEA State.

EEA parent mixed financial holding company

means a parent mixed financial holding company in an EEA State which is not a subsidiary of an institution authorised in any EEA State or of another financial holding company or mixed financial holding company set up in any EEA State.

EEA parent undertaking

means an EEA parent institution, an EEA parent financial holding company or an EEA parent mixed financial holding company.

group

means a parent undertaking and its subsidiaries.

group financial support agreement

means an agreement between:

1. (1) a parent institution in an EEA State, an EEA parent institution or a qualifying parent undertaking, a financial holding company, mixed financial holding company or mixed-activity holding company established in an EEA State; and
2. (2) a subsidiary of an entity referred to in (1) set up in a different EEA State to that of the entity referred in (1) or in a third country and that is an institution or a financial institution covered by the consolidated supervision of the entity referred to in (1),

to provide financial support to a party that is an institution at a time when that institution meets the conditions for early intervention.

management body

means a BRRD undertaking’s body or bodies, which are appointed in accordance with national law, which are empowered to set the BRRD undertaking’s strategy, objectives and overall direction, and which oversee and monitor management decision-making, and include the persons who effectively direct the business of the BRRD undertaking.

own funds requirement

means the requirements laid down in Articles 92 - 98 of the CRR.

parent institution in an EEA State

means an institution authorised in an EEA State which has an institution or financial institution as subsidiary or which holds a participation in such an institution or financial institution, and which is not itself a subsidiary of another institution authorised in the same EEA State or of a financial holding company or mixed financial holding company set up in the same EEA State.

parent financial holding company in an EEA State

means a financial holding company which is not itself a subsidiary of an institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company set up in the same EEA State.

parent mixed financial holding company in an EEA State

means a mixed financial holding company which is not itself a subsidiary of an institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company set up in the same EEA State.

1.4

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