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.

Article 6 Deficit of own funds at the financial conglomerate level

  1. (1)

    Where there is a deficit of own funds at the financial conglomerate level, only own fund items that are eligible under the sectoral rules for both the banking sector and the insurance sector shall be used to meet that deficit.

  2. (2)

    The own funds referred to in paragraph 1 are the following:

    1. (a)

      Common Equity Tier 1 capital as defined in Article 50 of Regulation (EU) No 575/2013;

    2. (b)

      basic own-fund items where those items may be included in Tier 1 own funds in accordance with Rule 3.1 of the Own Funds Part of the PRA Rulebook and the inclusion of those items is not limited by Article 82 of Regulation (EU) 2015/35;

    3. (c)

      Additional Tier 1 capital as defined in Article 61 of Regulation (EU) No 575/2013;

    4. (d)

      basic own-fund items where those items may be included in Tier 1 own funds in accordance Rule 3.1 of the Own Funds Part of the PRA Rulebook and the inclusion of those items is limited by Article 82 of Regulation (EU) 2015/35;

    5. (e)

      Tier 2 capital as defined in Article 71 of Regulation (EU) No 575/2013; and

    6. (f)

      basic own-fund items where those items may be included in Tier 2 in accordance with Rule 3.2 of the Own Funds Part of the PRA Rulebook.

  3. (3)

    Own funds items that are used to meet the deficit shall comply with Article 4(1).