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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.

You are viewing the version of the document as on 2021-01-01.

Status: In this content, we have included all amendments made by EU exit-related instruments up to end September 2020. There will be more amendments to be made later this year, further to the September QCP.

Article 2 Definitions

For the purposes of this Regulation, the following definitions apply:

  1. (1)

    "resolution entity" means either of the following:

    1. (a)

      an entity established in the United Kingdom, which is identified by the resolution authority Article 40 of and Schedule 2 to the Bank Recovery and Resolution (No 2) Order 2014 as an entity in respect of which the resolution plan provides for resolution action; or

    2. (b)

      (b) an institution that is not part of a group subject to consolidated supervision pursuant to Part 6 of the Capital Requirements Regulations, in respect of which the resolution plan drawn pursuant to Article 37 of the Bank Recovery and Resolution (No 2) Order 2014 provides for resolution action;

  2. (2)

    "resolution group" means the following:

    1. (a)

      a resolution entity and its subsidiaries that are not:

      1. (i)

        resolution entities themselves; or

      2. (ii)

        subsidiaries of other resolution entities; or

      3. (iii)

        entities established in a third country that are not included in the resolution group in accordance with the resolution plan and their subsidiaries;

  3. (3)

    "group institution" means a group entity which is a credit institution or an investment firm;

  4. (4)

    "relevant legal entity" means a group entity that either:

    1. (a)

      provides critical functions; or

    2. (b)

      represents or provides more than 5 % of any of the following:

      1. (i)

        the total risk exposure amount of the group, referred to in Article 92(3) of Regulation (EU) No 575/2013 of the European Parliament and of the Council;

      2. (ii)

        the leverage ratio total exposure measure of the group, referred to in Article 429(4) of Regulation (EU) No 575/2013;

      3. (iii)

        the operating income of the group on a consolidated basis.