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You are viewing the version of the document as on 2023-11-28.

This chapter includes rules that refer to provisions of the UK CRR in the form in which it stood at 1 January 2022. That version of the UK CRR can be found on using this link.

MIFIDPRU 3.1 Application and purpose



1This chapter applies to:

  1. (1)

    a MIFIDPRU investment firm; and

  2. (2)

    a UK parent entity that is required by MIFIDPRU 2.5.7R to comply with MIFIDPRU 3 on the basis of its consolidated situation.


1This chapter also applies to a parent undertaking that is subject to the group capital test in accordance with MIFIDPRU 2.6.5R, but with the following modifications:

  1. (1)

    the definitions in MIFIDPRU 2.6.2R apply when calculating the own funds instruments of the parent undertaking for the purposes of the group capital test; and

  2. (2)

    MIFIDPRU 3.2.2R and MIFIDPRU 3.2.3R do not apply, but MIFIDPRU 3.7 applies instead.


1For the purposes of this chapter:

  1. (1)

    any reference to the “UK CRR” is to the UK CRR in the form in which it stood on 1 January 2022, read together with any CRR rules (as defined in section 144A of the Act) made by the PRA that applied on that date;

  2. (2)

    where a term is not italicised but is defined in the UK CRR, the definition in the UK CRR applies;

  3. (3)

    where this chapter applies to a parent undertaking that is not a firm, reference to a “MIFIDPRU investment firm” or a “firm” includes a reference to that parent undertaking; and

  4. (4)

    where this chapter applies on the basis of the consolidated situation of an entity under MIFIDPRU 3.1.1R(2), a reference in this chapter to a “firm” is a reference to the hypothetical single MIFIDPRU investment firm created under the consolidated situation.



1This chapter contains requirements for the calculation of a MIFIDPRU investment firm’s own funds. These requirements are based on the provisions in Title I of Part Two of the UK CRR, but with the modifications set out in this chapter.

Supplementary provisions


2MIFIDPRU 3 Annex 7R (Additional provisions relating to own funds) and MIFIDPRU 3 Annex 8R (Prudent valuation and additional valuation adjustments) contain supplementary provisions that are relevant to certain rules in this chapter or certain requirements in the UK CRR that are cross-applied by rules in this chapter. A firm, UK parent entity or GCT parent undertaking that is applying a relevant rule in this chapter should therefore also refer to those annexes.