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PRU 8 Ann 2R 1PRU 8 Ann 2R

Prudential rules for third country groups (PRU 8.5.8 R to PRU 8.5.9 R)

PRU 8 Ann 2R 1

Table: PART 1: Third-country financial conglomerates

1.1

This Part of this annex sets out the rules with which a firm must comply under PRU 8.5.8 R with respect to a financial conglomerate of which it is a member.

1.2

A firm must comply, with respect to the financial conglomerate referred to in paragraph 1.1, with whichever of PRU 8.4.26 R and PRU 8.4.29 R is applied under paragraph 1.3.

1.3

For the purposes of paragraph 1.2:

1.4

If the condition in Articles 7(4) and 8(4) of the Financial Groups Directive is satisfied (the financial conglomerate is headed by a mixed financial holding company) with respect to the financial conglomerate referred to in paragraph 1.1 the firm must also comply with PRU 8.4.35 R (as adjusted in accordance with paragraph 3.1) with respect to that financial conglomerate.

1.5

A firm must comply with the following with respect to the financial conglomerate referred to in paragraph 1.1:

PRU 8 Ann 2R 2

Table: PART 2: Third-country banking and investment groups

2.1

This Part of this annex sets out the rules with which a firm must comply under PRU 8.5.9 R with respect to a third-country banking and investment group of which it is a member.

2.2

A firm must comply with one of the sets of rules specified in paragraph 2.3 as adjusted under paragraph 3.1 with respect to the third-country banking and investment group referred to in paragraph 2.1.

2.3

The rules referred to in paragraph 2.2 are as follows:

2.4

The set of rules from paragraph 2.3 that apply with respect to a particular third-country banking and investment group (as referred to in paragraph 2.1) are those that would apply if they were adjusted in accordance with paragraph 3.1.

2.5

The sectoral rules applied by Part 2 of this annex cover all prudential rules applying on a consolidated basis including those relating to large exposures.

2.6

A firm must comply with PRU 8.1 (as it applies to banking and investment groups and as adjusted under paragraph 3.1) with respect to the third-country banking and investment group referred to in paragraph 2.1.

PRU 8 Ann 2R 3

PART 3: Adjustment of scope

3.1

The adjustments that must be carried out under this paragraph are that the scope of the rules referred in Part 1 or Part 2 of this annex, as the case may be, are amended:

  • so as to remove any provisions disapplying those rules for third-country groups;
  • so as to remove all limitations relating to where a member of the third-country group is incorporated or has its head office; and
  • so that the scope covers every member of the third-country group that would have been included in the scope of those rules if those members had their head offices in, and were incorporated in, an EEA State.