Financial Services Act 2021

13 (1) Article 84 (minority interests included in consolidated Common Equity Tier 1 capital) is amended as follows. U.K.

(2) In paragraph 1(a), for point (i) substitute—

“(i) the amount of Common Equity Tier 1 capital of that subsidiary required to meet the following:

(A) the sum of the requirement laid down in point (a) of Article 92(1), the requirements referred to in Articles 458, 459 and 500, the specific own funds requirements referred to in regulation 34 of the Capital Requirements Regulations 2013, the combined buffer requirement defined in regulation 2 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014, and any additional local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital, or

(B) where the subsidiary is an FCA investment firm, the sum of the own funds requirements set out in Part 9C rules which apply to the subsidiary and any requirements set out in additional local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital;”.

(3) In paragraph 3—

(a) for “a competent authority” substitute “ the PRA ”, and

(b) for “interest” substitute “ interests ”.

(4) After paragraph 3 insert—

“3A Where Part 9C rules provide that, in relation to any subsidiaries which are FCA investment firms, the calculation referred to in paragraph 1 is to be undertaken on a consolidated basis so as to include those subsidiaries, minority interests within those subsidiaries shall not be recognised in own funds at the sub-consolidated or consolidated level, as applicable.”

Commencement Information

I1 Sch. 1 para. 13 in force at 1.1.2022 by S.I. 2021/671, reg. 5(1)(b) (with reg. 5(2)) (as amended by S.I. 2021/1163, regs. 1(2), 2)