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[X1PART ONE U.K. GENERAL PROVISIONS

TITLE II U.K. LEVEL OF APPLICATION OF REQUIREMENTS

CHAPTER 2 U.K. Prudential consolidation

Section 1 U.K. Application of requirements on a consolidated basis

Article 11 U.K. General treatment

[F11.[F2UK parent institutions] shall comply, to the extent and in the manner set out in Article 18, with the obligations laid down in [F3Parts Two and Three on the basis of their consolidated situation]. The parent undertakings and their subsidiaries that are subject to this Regulation shall set up a proper organisational structure and appropriate internal control mechanisms in order to ensure that the data required for consolidation are duly processed and forwarded. In particular, they shall ensure that subsidiaries not subject to this Regulation implement arrangements, processes and mechanisms to ensure proper consolidation.

2. For the purpose of ensuring that the requirements of this Regulation are applied on a consolidated basis, the terms ‘ institution ’, [F4‘UK parent institution’] and ‘ parent undertaking ’, as the case may be, shall also refer to:

(a) a financial holding company or mixed financial holding company approved in accordance with Article 21a of Directive 2013/36/EU [F5UK law];

(b) a designated institution controlled by a parent financial holding company or parent mixed financial holding company where such a parent is not subject to approval in accordance with Article 21a(4) of Directive 2013/36/EU [F5UK law];

(c) a financial holding company, mixed financial holding company or institution designated in accordance with point (d) of Article 21a(6) of Directive 2013/36/EU [F5UK law].

The consolidated situation of an undertaking referred to in point (b) of the first subparagraph of this paragraph shall be the consolidated situation of the parent financial holding company or the parent mixed financial holding company that is not subject to approval in accordance with Article 21a(4) of Directive 2013/36/EU [F5UK law]. The consolidated situation of an undertaking referred to in point (c) of the first subparagraph of this paragraph shall be the consolidated situation of its parent financial holding company or parent mixed financial holding company.]

F63.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F73a. By way of derogation from paragraph 1 of this Article, only parent institutions identified as resolution entities that are G-SIIs, part of a G-SII or part of a [F8non-UK G-SII] shall comply with Article 92a of this Regulation on a consolidated basis, to the extent and in the manner set out in Article 18 of this Regulation.

F9...F10]

F11 4.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F125.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.[F13In addition to the requirements of paragraphs 1 to 3, the competent authority may require an institution to comply with the obligations mentioned in the third sub-paragraph on a sub-consolidated basis when—

(a)it is justified for supervisory purposes by the specificities of the risk or the capital structure of the institution, or

(b)the institution is a ring-fenced body within the meaning of section 142A(1) of FSMA.]

The application of the approach set out in the first subparagraph shall be without prejudice to effective supervision on a consolidated basis. F14... [F15The obligations mentioned in this sub-paragraph are those provided for in—

(a)Parts [F16Two and Three] of this Regulation;

(b)Directive 2013/36/EU UK law which implemented Title 7, Chapter 4 of Directive 2013/36/EU.]

Textual Amendments

F6Article 12U.K. [F6Financial holding company or mixed financial holding company with both a subsidiary credit institution and a subsidiary investment firm]

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

[F7 Article 12a U.K. Consolidated calculation for G-SIIs with multiple resolution entities

Where at least two G-SII entities belonging to the same G-SII are resolution entities, the [F17UK parent institution] of that G-SII shall calculate the amount of own funds and eligible liabilities referred to in point (a) of Article 92a(1) of this Regulation. That calculation shall be undertaken on the basis of the consolidated situation of the [F17UK parent institution] as if it were the only resolution entity of the G-SII.

F18...]

Textual Amendments

F19 Article 13U.K. Application of disclosure requirements on a consolidated basis

Textual Amendments

[F1 Article 14 U.K. Application of requirements of Article 5 of Regulation (EU) 2017/2402 on a consolidated basis

1 . Parent undertakings and their subsidiaries that are subject to this Regulation shall be required to meet the obligations laid down in Article 5 of Regulation (EU) 2017/2402 on a consolidated or sub-consolidated basis, to ensure that their arrangements, processes and mechanisms required by those provisions are consistent and well-integrated and that any data and information relevant to the purpose of supervision can be produced. In particular, they shall ensure that subsidiaries that are not subject to this Regulation implement arrangements, processes and mechanisms to ensure compliance with those provisions.

2 . Institutions shall apply an additional risk weight in accordance with Article 270a of this Regulation when applying Article 92 of this Regulation on a consolidated or sub-consolidated basis if the requirements laid down in Article 5 of Regulation (EU) 2017/2402 are breached at the level of an entity established in a third country included in the consolidation in accordance with Article 18 of this Regulation if the breach is material in relation to the overall risk profile of the group.]]

Textual Amendments

F20 Article 15 U.K. Derogation from the application of own funds requirements on a consolidated basis for groups of investment firms

Textual Amendments

F21Article 16U.K. Derogation from the application of the leverage ratio requirements on a consolidated basis for groups of investment firms

Textual Amendments

F22 Article 17U.K. Supervision of investment firms waived from the application of own funds requirements on a consolidated basis

Textual Amendments

Editorial Information