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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.

Article 4 Supervisory measures

Without prejudice to any other supervisory powers conferred on them, competent authorities shall, in particular,

  1. (1)

    require, where appropriate, regulated entities or mixed financial holding companies to:

    1. (a)

      perform intra-group transactions of the financial conglomerate at arm's length or notify intra-group transactions which are not performed at arm's length;

    2. (b)

      approve intra-group transactions of the financial conglomerate through specified internal procedures with the involvement of its management body as defined in the Glossary of the PRA Rulebook and the FCA Handbook Glossary of definitions;

    3. (c)

      report more frequently than required under Regulatory Reporting Rule 12 of the of the PRA Rulebook and rule 16.12.33 of the FCA Supervision manual on significant risk concentration and significant intra-group transactions;

    4. (d)

      establish additional reporting on significant risk concentration and significant intra-group transactions of the financial conglomerate;

    5. (e)

      strengthen the risk management processes and internal control mechanisms of the financial conglomerate;

    6. (f)

      present or improve plans to restore compliance with supervisory requirements and to set a deadline for implementation thereof;

  2. (2)

    shall define appropriate thresholds in order to identify and overview significant risk concentration and significant intra-group transactions;