Prudential Regulation Authority Rulebook

2.1

A firm that is in scope of this Part by virtue of 1.1(1) must comply with this Part on an individual basis, unless it is:

1. (a) a CRR consolidation entity subject to 2.2; or
2. (b) a ring-fenced body subject to 2.4 which is the ultimate parent undertaking within its sub-consolidation group.

2.1A

Where a firm has been given permission under Article 9(1) of the CRR it shall incorporate relevant subsidiaries in the calculation undertaken to comply with rule 2.1.

2.1B

A firm may apply to the PRA for a permission that:

1. (a) disapplies 2.1; and
2. (b) provides for the requirements in this Part to apply on a sub-consolidated basis in relation to the firm, with such modifications as may be specified in that permission.

[Note: This is a permission under section 144G of FSMA to which Part 8 of the Capital Requirements Regulations applies]

2.2

A CRR consolidation entity which is in scope of this Part by virtue of 1.1(1A) must comply with this Part on the basis of its consolidated situation.

2.2A

The expression “consolidated situation” applies for the purposes of this Part as it does for the purposes of Parts Two and Three of the CRR.

[Note: the term “consolidation situation” is defined in Article 4(1)(47) of the CRR]

2.2B

For the purposes of 2.2, references to a firm in this Part (other than in 1.1) include a CRR consolidation entity.

2.3

[Deleted]

2.4

A ring-fenced body which is in scope of this Part by virtue of 1.1(2), must comply with this Part on the same sub-consolidated basis as it is required to comply with Parts Two and Three of the CRR.