Prudential Regulation Authority Rulebook

4.1

(1) Subject to (2), this chapter applies to every firm that is an institution where both of the following tests are met:

(a) the firm belongs to a third country banking and investment group that includes the firm and at least one other institution in the EU; and

(b) the total value of the assets in the EU of the third country banking and investment group to which the firm belongs is equal to or greater than 40 billion euros, calculated in accordance with 4.3.

(2) This chapter shall not apply to a firm if it is a member of a third country banking and investment group operating through more than one institution in the EU that had total assets in the EU equal to or greater than 40 billion euros on 27 June 2019.

4.2

A firm referred to in 4.1 must have a single intermediate EU parent undertaking that is either:

(1) a credit institution authorised in accordance with Article 8 CRD;

(2) a financial holding company or mixed financial holding company approved in accordance with Article 21a CRD; or

(3) where none of the institutions subject to 4.1 is a credit institution, an investment firm that is authorised in accordance with Article 5.1 MiFID and is subject to BRRD.

4.3

The calculation in 4.1(1)(b) shall be as follows:

(1) The total value of the assets in the EU of the third country banking and investment group is the sum of:

(a) the total value of the assets of each institution in the EU belonging to the third country banking and investment group; and

(b) the total value of the assets of each branch of the third country banking and investment group authorised in the EU in accordance with CRD, MiFIDII or MiFIR.

(2) The total value of the assets of an institution shall be assessed:

(a) if the institution is at the head of a consolidation group, on the basis of its own consolidated situation; and otherwise

(b) on an individual basis.

(3) In making this calculation no asset or value of an asset shall be double counted.