BIPRU 10.9 Wider Integrated Group

This section applies to a BIPRU firm if:

1. (1)

   it has a wider integrated group waiver; and

2. (2)

   it is a member of a UK integrated group and of a wider integrated group.

If this section applies, BIPRU 10.8 (UK Integrated Groups) does not apply.

If this section applies to a firm, it must apply it to all exposures to all its concentration risk group counterparties and not just some of them.

The wider integrated group of a firm consists of each concentration risk group counterparty of the firm that is not a member of the firm's UK integrated group but satisfies all the conditions for membership of the firm's UK integrated group except for BIPRU 10.8.4 R (4) (Establishment in the United Kingdom).

For the purposes of this section, and in relation to a firm and its wider integrated group, a diverse block means all undertakings in the wider integrated group designated as a single diverse block by the applicable wider integrated group permission.

For the purposes of this section, and in relation to a firm and its wider integrated group, a member of the residual block means a concentration risk group counterparty of the firm which is not a member of the firm's UK integrated group or wider integrated group.

A firm to which this section applies must ensure that the rules listed in BIPRU 10.9.9 R are complied with on a consolidated basis on the following basis:

1. (1)

   the rules apply in relation to the firm's UK integrated group rather than in relation to the firm;

2. (2)

   the rules apply in relation to exposures of the members of the UK integrated group to members of each of the following:

   1. (a)

      each diverse block; and

   2. (b)

      the residual block; and

3. (3)

   the UK integrated group, each diverse block and the residual block must each be treated as separate single undertakings.

The rules referred to in BIPRU 10.9.8 R are:

1. (1)

   BIPRU 10.5.6 R (25% non-trading book limit);

2. (2)

   BIPRU 10.5.11 R (trading book limits) other than BIPRU 10.5.11 R (2) (CNCOM);

3. (3)

   BIPRU 10.5.12 R (500% limit for trading book excess exposures) with the deletion of the time limit set out in BIPRU 10.5.12 R; and

4. (4)

   BIPRU 10.7 (Treasury concession and intra-group securities financing transactions).

BIPRU 10.8.10 R (Adjustments to the Treasury concession exemption) and BIPRU 10.8.11 R (Adjustments to the exemption for securities financing transactions) apply for the purposes of this section in the same way that they apply for the purposes of BIPRU 10.8 (UK Integrated Groups).

BIPRU 10.8.13 R (Calculation of capital resources for a UK integrated group) applies for the purposes of this section in the same way that it applies for the purposes of BIPRU 10.8 (UK Integrated Groups).

If this section applies to a firm, then subject to BIPRU 10.10 (Treatment of the trading book concentration risk excess under the integrated groups regime), it may, on a solo basis, treat an exposure to a concentration risk group counterparty as exempt from the limits in BIPRU 10.5 (Limits on exposures and large exposures).