Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.


Status: This chapter was amended on 31 December 2020 as a result of Brexit. However, it is subject to the FCA Prudential Transitional Direction, which means that firms should not comply with these provisions yet. Instead, firms must follow this link and continue to comply with pre-IP completion day requirements https://www.handbook.fca.org.uk/handbook?date=31-12-2020&timeline=True (unless specified otherwise in the Direction). To see a full list of Handbook modules affected, please see Section B of the Annex to the Direction.

IFPRU 10.6 Application on an individual and consolidated basis

Application on an individual basis

IFPRU 10.6.1 R RP

This chapter applies to a firm on an individual basis, whether or not it also applies to the firm on a consolidated basis or sub-consolidated basis.

Application on a consolidated basis

IFPRU 10.6.2 R RP

A firm that is a UK parent institution1 must comply with this chapter on the basis of its consolidated situation.

IFPRU 10.6.3 R RP

A firm controlled by a UK parent financial holding company1 or a UK parent mixed financial holding company1 must comply with this chapter on the basis of the consolidated situation of that holding company in the FCA consolidation group.

Sub-consolidation of entities in third countries

IFPRU 10.6.4 R RP

A firm that is a subsidiary must apply this chapter on a sub-consolidated basis if the firm, or the parent undertaking where it is a financial holding company or mixed financial holding company, have an institution or financial institution as a subsidiary in a third country or hold a participation in such an institution or financial institution.

[Note: articles 129(1) (part) and 130(1) (part) of CRD]

Extent and manner of prudential consolidation

IFPRU 10.6.5 G RP

If this chapter applies to a firm on a consolidated basis on a sub-consolidated basis, the firm must carry out consolidation to the extent and in the manner prescribed in Part One, Title II, Chapter 2, Section 2 (Methods for prudential consolidation) and Section 3 (Scope of prudential consolidation) of the UK CRR2 and IFPRU 8.1 (Prudential consolidation).