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ELM 7.3 Consolidated capital adequacy

ELM 7.3.1R

If:

  1. (1)

    a firm (firm A) is a member of a group;

  2. (2)

    another member of that group (firm B) is a firm that is subject to BIPRU 81;

    1
  3. (3)

    firm B is in firm A's immediate group; and

  4. (4)

    firm A is included in the scope of the consolidation under BIPRU 81 as it applies to firm B;

    1

firm A must comply with BIPRU 8 as it applies to firm B except that the rules in BIPRU 8 relating to non-EEA sub-group do not apply.1

1
ELM 7.3.2R

If:

  1. (1)

    ELM 7.3.1 R does not apply to a firm;

  2. (2)

    the firm is a member of an EEA consolidated group;

    1
  3. (3)

    there is a full credit institution or an investment firm in that EEA consolidated group;1

    1
  4. (4)

    the undertaking in (3) is in the firm's immediate group; and1

  5. (5)

    that EEA consolidated group is not subject to supervision on a consolidated basis by a competent authority of another EEA State under the Banking Consolidation Directive, the E-Money Directive or the Capital Adequacy Directive;1

the firm must comply with BIPRU 8 with respect to that EEA consolidated group as follows:1

1
  1. (6)

    BIPRU 8 applies as it does to a bank in a UK consolidation group; and1

  2. (7)

    the rules in BIPRU 8 relating to non-EEA sub-group do not apply.1

ELM 7.3.2AR

1If:

  1. (1)

    ELM 7.3.1 R and ELM 7.3.2 R do not apply to a firm;

  2. (2)

    the firm is a member of an UK consolidated group;

  3. (3)

    there is a full credit institution or an investment firm in that UK consolidated group; and

  4. (4)

    the undertaking in (3) is in the firm's immediate group;

the firm must, at all times, maintain capital resources (calculated in accordance with the relevant rule) at a level that ensures that, taking into account (in the manner and to the extent provided for in that rule) the capital resources of other members of the firm's group, the firm would comply with BIPRU 8 as it applies when there is a bank in the UK consolidation group if it applied to the firm. For the purposes of ELM 7.3.3 R, the rules in BIPRU 8 apply to the UK consolidated group in the same way as they apply to a UK consolidation group under BIPRU 8. The rules in BIPRU 8 relating to non-EEA sub-group do not apply.

ELM 7.3.3R

If:

  1. (1)

    ELM 7.3.1 R, ELM 7.3.2 R and ELM 7.3.2A R1 do not apply to a firm;

    1
  2. (2)

    the firm is a member of an EEA consolidated group; and

  3. (3)

    that EEA consolidated group is not subject to supervision on a consolidated basis by a competent authority of another EEA State under the Banking Consolidation Directive, the E-Money Directive or the Capital Adequacy Directive;

the firm must ensure that at all times its own funds are of such an amount that its EEAgroup risk own funds are equal to or exceed its EEA group risk own funds requirement.

ELM 7.3.4R

If:

  1. (1)

    ELM 7.3.1 R, ELM 7.3.2 R, ELM 7.3.2A R1 and ELM 7.3.3 R do not apply to a firm; and

  2. (2)

    the firm is a member of a UK consolidated group;

the firm must ensure that at all times its own funds are of such an amount that its UK group riskown funds are equal to or exceed its UK group riskown funds requirement.