Prudential Regulation Authority Rulebook

9.1

1. (1) Where a ring-fenced body receives services and accesses facilities that it requires on a regular basis from an entity in its group, it may do so, whether directly or indirectly, only where that entity is a permitted supplier.
2. (2) (1) does not apply to the extent the group member is:
3. 1. (a) a direct participant in an FMI; and
   2. (b) acting as an intermediary for the ring-fenced body to access the FMI.
4. (3) For the avoidance of doubt:
5. 1. (a) the definition of central counterparty applies for the purposes of this Chapter whether or not the central counterparty is regulated by Regulation (EU) No. 648/2012, or is established in an EEA state or elsewhere; and
   2. (b) the definitions of central securities depository and participant apply for the purposes of this Chapter whether or not the central securities depository or participant is regulated by Regulation (EU) No. 909/2014, or is established in an EEA state or elsewhere.

9.2

A ring-fenced body must ensure the agreement and any related arrangement under which it receives services or accesses facilities it requires in relation to the carrying on of core activities does not permit any other party to terminate, suspend or materially alter the services or facilities or the agreement or arrangement as a result of an act, omission or deterioration in the financial circumstances of another entity within the same group as the ring-fenced body.

9.3

1. (1) 9.3(2) applies if the ability of a permitted supplier (PS1) that provides services or facilities referred to in 9.2 to a ring-fenced body is dependent upon the provision of services or facilities to PS1 by another permitted supplier (PS2), whether the provision of services or facilities to PS1 by PS2 is direct or indirect.
2. (2) 9.2 does not prevent the ring-fenced body agreeing PS1 may suspend or alter the provision of those services or facilities to the extent it is prevented from providing those services or facilities as a result of a deterioration in the financial circumstances of PS2, provided:
1. (a) the ring-fenced body takes all reasonable steps before and after entering into that agreement to reduce the probability and likely impact of such an alteration to the provision of those services or facilities; and
2. (b) the agreement requires PS1 to use its best efforts to eliminate or reduce the effect of any such suspension or alteration.