IFPRU 10.6 Application on an individual and consolidated basis
Application on an individual basis
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
A firm that is a parent institution in a Member State must comply with this chapter on the basis of its consolidated situation.
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 chapter on the basis of the consolidated situation of that holding company in the FCA consolidation group.
Sub-consolidation of entities in third countries
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
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 EU CRR and IFPRU 8.1 (Prudential consolidation).