Financial Services and Markets Act 2000

[F1192P.Requirement for approvalU.K.

This section has no associated Explanatory Notes

(1)No company may be established in the United Kingdom as a parent financial holding company or a parent mixed financial holding company unless—

(a)the company is approved by the PRA;

(b)the PRA has confirmed that the company is exempt from the requirement for approval under subsection (2); or

(c)the subsidiary undertakings of the company do not include—

(i)a credit institution, or

(ii)a designated investment firm.

(2)A company is exempt from the requirement for approval if—

(a)it is a parent financial holding company and its principal activity is to acquire holdings in subsidiary undertakings; or

(b)it is a parent mixed financial holding company and its principal activity with respect to institutions and financial institutions is to acquire holdings in subsidiary undertakings,

and all of the conditions in subsection (3) are satisfied.

(3)The conditions in this subsection are satisfied if—

(a)the Bank of England has not identified the company as a resolution entity (within the meaning of section 3 of the Banking Act 2009) in a group resolution plan under Part 5 of the Bank Recovery and Resolution (No. 2) Order 2014;

(b)a credit institution or a designated investment firm which is a subsidiary undertaking in the same group as the company—

(i)has been designated by the PRA as responsible to ensure the group’s compliance with prudential requirements on a consolidated or sub-consolidated basis, and

(ii)has the power required to discharge those obligations effectively, whether under contractual arrangements with other companies in the group or otherwise;

(c)the company does not take any management, operational or financial decisions affecting—

(i)the group as a whole, or

(ii)any of its subsidiary undertakings which are institutions or financial institutions;

(d)the PRA is satisfied that there is no impediment to the effective supervision of the group on a consolidated or sub-consolidated basis.

(4)For the purposes of this section, a company is established in the United Kingdom if the company is incorporated in, or formed under the law of, any part of the United Kingdom.]

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