The Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020

Transitional provisions U.K.

5.—(1) Paragraphs (2) to (7) apply to a company (“C”) which—

(a) is established in the United Kingdom as a parent financial holding company or a parent mixed financial holding company on 29th December 2020; and

(b) requires approval or confirmation of an exemption from the Prudential Regulation Authority (“PRA”) under section 192P of the Financial Services and Markets Act 2000 (“FSMA”).

(2) C is to be treated as having an approval to be established in the United Kingdom as a parent financial holding company or parent mixed financial holding company (as the case may be).

(3) C’s approval under paragraph (2) lapses—

(a) on 28th June 2021, if C has not submitted an application to the PRA under section 192Q of FSMA before that date; or

(b) on the earlier of—

(i) the day on which C’s application under section 192Q of FSMA is finally determined, or

(ii) 31st December 2021.

(4) For the purposes of this regulation, an application is finally determined—

(a) when the application is withdrawn;

(b) when the PRA approves C, or confirms that C is exempt from the requirement for approval, under section 192R of FSMA;

(c) where the PRA refuses approval, or rejects an application for confirmation of exemption, and the matter is not referred to the Tribunal, when the time for referring the matter to the Tribunal has expired;

(d) where the PRA refuses approval, or rejects an application for confirmation of exemption, and the matter is referred to the Tribunal, the date on which the reference is determined by the Tribunal or has otherwise ended.

(5) The PRA may designate one or more financial holding companies, mixed financial holding companies or institutions within the group of which the holding company or institution forms part as being responsible for ensuring that the group complies with the requirements laid down in Directive 2013/36/EU UK law and in the capital requirements regulation on a consolidated or sub-consolidated basis until such time as C’s application has been finally determined.

(6) For the purposes of sections 71B to 71H of FSMA, in relation to a holding company designated under paragraph (5) which is not a parent undertaking, “appropriate regulator” means the PRA.

(7) For the purposes of this regulation—

(a) “consolidated basis”, “Directive 2013/36/EU UK law”, “financial holding company”, “mixed financial holding company”, “institution”, “parent financial holding company”, “parent mixed financial holding company” and “sub-consolidated basis” have the meanings given in section 192O of FSMA (inserted by regulation 2(7));

(b) “capital requirements regulation” has the meaning given in section 417 of FSMA;

(c) “group” has the meaning given in section 421 of FSMA.

(8) In relation to rules made under section 192V of FSMA, the requirements of section 138J of that Act (consultation) may be satisfied by things done before 28th December 2020 as well as by things done on or after that date.

Commencement Information

I1 Reg. 5(1)-(4)(6)-(8) in force at 29.12.2020, see reg. 1(4)

I2 Reg. 5(5) in force at 27.11.2020, see reg. 1(2)