close links

1. (1) (in relation to MiFID business) a situation in which two or more persons are linked by:52
   1. (a) participation which means the ownership, direct or by way of control, of 20% or more of the voting rights or capital of an undertaking;52
   1. (b) control which means the relationship between a parent undertaking and a subsidiary, in all the cases referred to in Article 1(1) and (2) of Directive 83/349/EEC, or a similar relationship between any person and an undertaking, any subsidiary undertaking of a subsidiary undertaking also being considered a subsidiary of the parent undertaking which is at the head of those undertakings.52

[Note: article 4 (1)(31) of MiFID]52

A situation in which two or more persons are permanently linked to one and the same person by a control relationship is also to be regarded as constituting a close link between such persons.52

1. 52(2) (except where (1) applies87 and except87 52 in SUP 3 (Auditors) and SUP 4 (Actuaries)) (in accordance with paragraph 3(2) 52in52 Schedule 6 to the Act (Close links)) the relationship between a person ("A") and another person ("CL") which exists if:
   1. (a) CL is a parent undertaking of A; or
   1. (b) CL is a subsidiary undertaking of A; or
   1. (c) CL is a parent undertaking of a subsidiary undertaking of A; or
   1. (d) CL is a subsidiary undertaking of a parent undertaking of A; or
   1. (e) CL owns or controls 20% or more of the voting rights or capital of A; or
   1. (f) A owns or controls 20% or more of the voting rights or capital of CL.
1. 52(3) (90 52 in SUP 3 (Auditors) and SUP 4 (Actuaries)) (in accordance with section 343(8) of the Act (Information given by auditor or actuary to the Authority: persons with close links)) the relationship in (2)90, disregarding (e) and (f).