12(1)The relevant group is a “banking group” if—U.K.
(a)condition A, B, C or D is met, and
(b)the exempt activities condition is not met (see paragraph 13).
(2) Condition A is that the parent entity is a UK resident bank (see paragraph 80) or a relevant foreign bank (see paragraph 78).
(3)Condition B is that—
(a)the parent entity is an investment entity, and
(b) the members of the relevant group include at least one UK resident bank to which sub-paragraph (6) applies or relevant foreign bank to which that sub-paragraph applies.
(4)Condition C is that—
(a)the parent entity is a non-UK resident entity to which sub-paragraph (8) applies, and
(b) the members of the relevant group include at least one UK resident bank or relevant foreign bank.
(5)Condition D is that—
(a)the parent entity is an investment entity,
(b)the members of the relevant group include at least one non-UK resident entity to which both sub-paragraphs (6) and (8) apply, and
(c) those members also include at least one UK resident bank or relevant foreign bank.
(6)This sub-paragraph applies to an entity (“E”) if, for the purposes of the applicable accounting provisions, E is not a subsidiary of any other entity apart from investment entities.
(7) “ The applicable accounting provisions ” means—
(a)the provisions mentioned in paragraph 4(3), or
(b) if the members of the relevant group are determined under paragraph 4(7), the provisions of US GAAP mentioned in paragraph 4(6)(a)(iii).
(8)This sub-paragraph applies to an entity (“F”) if—
(a) F would be a UK resident bank if—
(i) F were a UK resident entity,
(ii)it carried on its activities in the United Kingdom,
(iii) where it would be required to be an authorised person for the purposes of FISMA 2000 in order to carry on those activities in the United Kingdom, it were an authorised person with permission to carry on those activities, and
(iv)where those activities consist wholly or mainly of any of the relevant[F1regulated] activities described in the provisions mentioned in paragraph 79(b) to (f), as a result of carrying on those activities and having such permission it would be a BIPRU 730k firm and [F2an IFPRU 730k firm and a full scope IFPRU investment firm, ], or
(b) F is a member of a partnership which is a non-UK resident entity and F would be a UK resident bank if—
(i) both F and the partnership were UK resident entities,
(ii)the partnership carried on its activities in the United Kingdom,
(iii) where the partnership would be required to be an authorised person for the purposes of FISMA 2000 in order to carry on those activities in the United Kingdom, the partnership were an authorised person with permission to carry on those activities, and
(iv)where those activities consist wholly or mainly of any of the relevant [F3regulated] activities described in the provisions mentioned in paragraph 79(b) to (f), as a result of carrying on those activities and having such permission the partnership would be [F4an IFPRU 730k firm and a full scope IFPRU investment firm].
(9)“Investment entity”—
(a)means an entity the business of which consists wholly or mainly of, and the principal part of the income of which is derived from, the making of investments, and
(b)also includes any savings bank or other bank for savings.
Textual Amendments
F1Word in Sch. 19 para. 12(8)(a)(iv) inserted (1.1.2014 retrospective) by Finance (No. 2) Act 2015 (c. 33), s. 20(2)(a)(i)(8)
F2Words in Sch. 19 para. 12(8)(a)(iv) substituted (1.1.2014 retrospective) by Finance (No. 2) Act 2015 (c. 33), s. 20(2)(a)(ii)(8)
F3Word in Sch. 19 para. 12(8)(b)(iv) inserted (1.1.2014 retrospective) by Finance (No. 2) Act 2015 (c. 33), s. 20(2)(b)(i)(8)
F4Words in Sch. 19 para. 12(8)(b)(iv) substituted (1.1.2014 retrospective) by Finance (No. 2) Act 2015 (c. 33), s. 20(2)(b)(ii)(8)