close links

1. (1) (in relation to MiFID businessor in FUND) a situation in which two or more persons are linked by:
   1. (a) participation in the form of211 ownership, direct or by way of control, of 20% or more of the voting rights or capital of an undertaking;
   1. (b) control which means the relationship between a parent undertaking and a subsidiary, in all the cases referred to in article 22(1) and (2) of the Accounting Directive211, or a similar relationship between any person and an undertaking, any subsidiary undertaking of a subsidiary undertaking also being considered to be211 a subsidiary of the parent undertaking which is at the head of those undertakings.
   1. (c) a permanent link of both or all of them to the same person by a control relationship.211

211

[Note: article 4(1)(35) of MiFID211

and article 4(1)(e) of AIFMD]

1. (2) (except where (1) applies and except in SUP 3 (Auditors),223 SUP 4 (Actuaries)) and SUP 12.4.8CR (Close links))223 (in accordance with paragraph 3(2) in 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. (3) (in SUP 3 (Auditors) and SUP 4 (Actuaries)) (in accordance with section 343(8) of the Act (Information given by auditor or actuary to a regulator: persons with close links)) the relationship in (2), disregarding (e) and (f).
1. (4) (in SUP 12.4.8CR (Close links)) a situation in which two or more persons are linked by223:
   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;223
   1. (b) control which means the relationship between a parent undertaking and a subsidiary undertaking as set out in article 1 of Directive 83/349/EEC, or a similar relationship between any person and an undertaking.223
   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.223 [Note: article 2(1)(13) of the IDD] 223