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 11.1 1Application and purpose

Application

IFPRU 11.1.1RRP

IFPRU 11 applies to:

  1. (1)

    an IFPRU 730k firm that is not subject to supervision on a consolidated basis;

  2. (2)

    a firm that is an RRD group member;

  3. (3)

    a qualifying parent undertaking that is an RRD group member; and

  4. (4)

    a qualifying parent undertaking that is a mixed activity holding company of an IFPRU 730k firm.

IFPRU 11.1.2GRP
  1. (1)

    An IFPRU 730k firm that is not subject to supervision on a consolidated basis will not be an RRD group member.

  2. (2)

    An IFPRU 730k firm may be subject to supervision on a consolidated basis by the FCA or the PRA2.

Exclusion of PRA authorised persons and groups

IFPRU 11.1.3RRP

This chapter does not apply to:

  1. (1)

    a PRA authorised person;

  2. (2)

    an RRD group member that is:

    1. (a)

      a qualifying parent undertaking of a PRA authorised person; and

    2. (b)

      subject to supervision on a consolidated basis by the PRA; and

  3. (3)

    a qualifying parent undertaking that is a mixed activity holding company of a PRA authorised person.

Exclusion of non-UK firms

IFPRU 11.1.4RRP

This chapter does not apply to a firm that is incorporated in, or formed under the law of, a third country.2

Purpose

IFPRU 11.1.5GRP

This chapter implements certain provisions of RRD.

Guidance on application

IFPRU 11.1.6GRP
  1. (1)

    RRD applies to credit institutions and to investments firms with an initial capital requirement of €730,000. Together, these are referred to as RRD institutions in our rules.

  2. (2)

    It also applies to financial institutions, financial holding companies and mixed financial holding companies within the same group as these institutions that are subsidiaries of a UK parent undertaking. A UK parent undertaking2 is an institution, a financial holding company or a mixed financial holding company in the UK2 that is not itself a subsidiary of an institution, a financial holding company or a mixed financial holding company in the UK2.

  3. (3)

    A group of these types of institutions and group members is referred to as an RRD group in our rules and the members of an RRD group are referred to as RRD group members.

  4. (4)

    If the group includes a BIPRU firm this firm will be an RRD group member because a BIPRU firm is a financial institution.

  5. (5)

    Some parts of RRD also apply to mixed activity holding companies of RRD institutions.

  6. (6)

    The table in IFPRU 11.1.7 G summarises the application of IFPRU 11.

IFPRU 11.1.7GRP

The table below summarises whether a section of IFPRU 11 applies to a firm or qualifying parent undertaking:

(1) IFPRU 730k firm that is not subject to supervision on a consolidated basis

(2) firm or qualifying parent undertaking that is the UK parent undertaking2 of an RRD group

2

(4) firm or qualifying parent undertaking that is a subsidiary of a UK parent undertaking2 of an RRD group

(5) qualifying parent undertaking that is a mixed activity holding company of an IFPRU 730k firm

IFPRU 11.1 (Application and purpose)

Yes

Yes

2

Yes

Yes

IFPRU 11.2 (Individual recovery plans)

Yes

No

2

No

No

IFPRU 11.3 (Group recovery plans)

No

Yes

2

No

No

IFPRU 11.4 (Information for resolution plans)

Yes

Yes

2

No

No

IFPRU 11.5 (Intra-group financial support)

No

Yes

2

Yes

Yes (note 12)

IFPRU 11.6 (Contractual recognition of bail-in)

Yes

Yes

2

Yes

Yes (note 22)

IFPRU 11.7 (Notifications)

Yes

Yes

2

Yes

Yes

2

Note 12: IFPRU 11.5 only applies to mixed activity holding companies of an IFPRU 730k firm in an RRD group.

Note 22: IFPRU 11.6 only applies to mixed activity holding companies that do not hold an RRD institution using an intermediate financial holding company or mixed financial holding company.