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:

1. (1) the PRA, in respect of PRA-authorised persons;
2. (2) the FCA, in respect of any other person.

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, or the requirements of provisions implementing CRD, MiFID II or any of Articles 3 - 7, 14 - 17 and 24, - 26 of MiFIR.

group

means a parent undertaking and its subsidiaries.

group financial support agreement

means an agreement between:

1. (1) a UK parent institution, or a qualifying parent undertaking, a financial holding company, a mixed financial holding company or a mixed-activity holding company established in the UK; and
2. (2) a subsidiary of an entity referred to in (1) set up 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 UK 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.

UK parent undertaking

means a UK parent institution, a UK parent financial holding company or a UK parent mixed financial holding company.

1.4

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