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, the PRA or another competent authority.

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:

  1. (1)

    an incoming firm; or

  2. (2)

    a firm that is incorporated in, or formed under the law of, a third country.

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 an EEA parent undertaking. An EEA parent undertaking is an institution, a financial holding company or a mixed financial holding company in the EEA that is not itself a subsidiary of an institution, a financial holding company or a mixed financial holding company in the EEA.

  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 EEA parent undertaking of an RRD group

(3) specific application to an IFPRU 730k firm that is a subsidiary of an EEA parent undertaking in another EEA State (note 1)

(4) firm or qualifying parent undertaking that is a subsidiary of an EEA parent undertaking 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

No

Yes

Yes

IFPRU 11.2 (Individual recovery plans)

Yes

No

No

No

No

IFPRU 11.3 (Group recovery plans)

No

Yes

Yes

No

No

IFPRU 11.4 (Information for resolution plans)

Yes

Yes

Yes

No

No

IFPRU 11.5 (Intra-group financial support)

No

Yes

Yes - IFPRU 11.5.7 R only

Yes

Yes (note 2)

IFPRU 11.6 (Contractual recognition of bail-in)

Yes

Yes

No

Yes

Yes (note 3)

IFPRU 11.7 (Notifications)

Yes

Yes

No

Yes

Yes

Note 1: IFPRU 11.3.1R (3) and IFPRU 11.4.1R (4) more fully describe this type of firm. Where specific application is not provided for this type of firm, the application is explained by (4).

Note 2: IFPRU 11.5 only applies to mixed activity holding companies of an IFPRU 730k firm in an RRD group.

Note 3: 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.