The Capital Requirements Regulations 2013

Changes over time for: Section 21

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The Capital Requirements Regulations 2013, Section 21 is up to date with all changes known to be in force on or before 31 July 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

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Changes and effects yet to be applied to Regulation 21:

Regulations revoked by 2023 c. 29 Sch. 1 Pt. 2

Assessment of equivalence of consolidated supervision by supervisory authorities in [F1third countries] U.K.

This section has no associated Explanatory Memorandum

21.—(1) In this regulation, a “relevant institution” is an institution which satisfies the following conditions—

(a)the institution is authorised by the PRA F2...

(b)the parent undertaking of the institution is an institution, financial holding company or mixed financial holding company whose head office is not located in [F3the United Kingdom];

(c)the institution is not subject to supervision on a consolidated basis [F4by the F5... PRA];

(d)the PRA F6... would (but for paragraph (4)) be responsible for supervision of the institution on a consolidated basis; and

(e)either—

(i)the parent undertaking of the institution, or any regulated entity established in the [F7United Kingdom] which is a member of the same group as the institution, has requested the assessment referred to in paragraph (2) be carried out; or

(ii)the PRA F8... has decided on its own initiative to carry out that assessment.

[F9(2) The PRA must assess whether a relevant institution is subject to supervision on a consolidated basis by a supervisory authority of a country outside the United Kingdom which is equivalent to the standard of supervision on a consolidated basis applied by the PRA in accordance with Directive 2013/36/EU UK law, the capital requirements regulation and CRR rules.]

F10(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Where the [F11PRA] concludes that a relevant institution is not subject to equivalent supervision in accordance with paragraph (2), the [F11PRA] may apply—

(a)the requirements of [F12Directive 2013/36/EU UK law][F13, the capital requirements regulation and CRR rules] to the institution, amended as necessary; or

(b)other appropriate supervisory techniques, which must be designed to achieve the objectives of supervision on a consolidated basis F14...

(5) The other appropriate supervisory techniques referred to in paragraph (4) may include a requirement on the institution to establish a financial holding company or mixed financial holding company with its head office in [F15the United Kingdom], so that supervision on a consolidated basis may be applied in relation to the consolidated situation of that holding company.

F16(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1Words in reg. 21 heading substituted (31.12.2020) by The Capital Requirements (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1401), regs. 1(3), 18(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F2Words in reg. 21(1)(a) omitted (1.1.2022) by virtue of The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2021 (S.I. 2021/1376), regs. 1(3), 16(5)(a)(i)

F3Words in reg. 21(1)(b) substituted (31.12.2020) by The Capital Requirements (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1401), regs. 1(3), 18(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F4Words in reg. 21(1)(c) substituted (31.12.2020) by The Capital Requirements (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1401), regs. 1(3), 18(c) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F5Words in reg. 21(1)(c) omitted (1.1.2022) by virtue of The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2021 (S.I. 2021/1376), regs. 1(3), 16(5)(a)(ii)

F6Words in reg. 21(1)(d) omitted (1.1.2022) by virtue of The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2021 (S.I. 2021/1376), regs. 1(3), 16(5)(a)(iii)

F7Words in reg. 21(1)(e)(i) substituted (31.12.2020) by The Capital Requirements (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1401), regs. 1(3), 18(d) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

F8Words in reg. 21(1)(e)(ii) omitted (1.1.2022) by virtue of The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2021 (S.I. 2021/1376), regs. 1(3), 16(5)(a)(iii)

F9Reg. 21(2) substituted (1.1.2022) by The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2021 (S.I. 2021/1376), regs. 1(3), 16(5)(b)

F10Reg. 21(3) omitted (31.12.2020) by virtue of The Capital Requirements (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1401), regs. 1(3), 18(f) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)