Prudential Regulation Authority Rulebook

1.1

This Part applies to every firm that is a CRR firm.

1.2

A firm that is neither a subsidiary of a parent undertaking incorporated in or formed under the law of any part of the UK nor a parent undertaking must comply with this Part on an individual basis.

1.3

A firm that is not a member of a consolidation group must comply with this Part on an individual basis.

1.4

A firm which is a parent institution in a Member State must comply with this Part on a consolidated basis.

1.5

A firm controlled by a parent financial holding company in a Member State or a parent mixed financial holding company in a Member State must comply with this Part on the basis of the consolidated situation of that holding company, if the PRA is responsible for supervision of the firm on a consolidated basis under Article 111 of the CRD.

1.6

In this Part the following definitions shall apply:

Advanced Measurement Approach

means the advanced measurement approach referred to in Article 312(2) of the CRR.

consolidation group

means the undertakings included in the scope of consolidation pursuant to Articles 18(1), 18(8), 19(1), 19(3) and 23 of the CRR and Groups 2.1 to 2.3.

data item

means an item referred to in 4.

defined benefit pension scheme

means an occupational pension scheme with benefits defined independently of the firm’s contributions as employer and investment returns.

ICAAP assessment

means a firm’s written record of the assessments required under Internal Capital Adequacy Assessment.

IRB Approach

has the meaning given in article 143(1) of the CRR.

occupational pension scheme

has the meaning given in article 3(1) of the Regulated Activities Order.

parent financial holding company in a Member State

means (in accordance with point (26) of Article 3(1) of the CRD) 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 institution in a Member State

means (in accordance with point (24) of Article 3(1) of the CRD) 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 mixed financial holding company in a Member State

means (in accordance with point (28) of Article 3(1) of the CRD) 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.

Standardised Approach to credit risk

means the approach to credit risk set out in Chapter 2 of Title II of CRR.