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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

prudential context

        1. (1) For the FCA, in relation to activities carried on by a firm, the context in which the activities have, or might reasonably be regarded as likely to have, a negative effect on:
          1. (a) the integrity of the UK financial system; or
          1. (b) the ability of the firm to meet either:
            1. (i) the "fit and proper" test in threshold condition 2E and 3D (Suitability); or
            1. (ii) the applicable requirements and standards under the regulatory system relating to the firm's financial resources.
        1. (2) For the PRA, in relation to activities carried on by a firm, the context in which the activities have, or might reasonably be regarded as likely to have, a negative effect on:
          1. (a) the safety and soundness of PRA-authorised persons; or
          1. (b) the ability of the firm to meet either:
            1. (i) the "fit and proper" test in threshold condition 5 (Suitability); or
            1. (ii) the applicable requirements and standards under the regulatory system relating to the firm's financial resources.