F1PART 12BApproval of certain holding companies
F2Rules
Ss. 192XA-192XC and cross-heading inserted (9.6.2021) by Financial Services Act 2021 (c. 22), s. 49(5), Sch. 3 para. 7 (with Sch. 3 Pt. 4); S.I. 2021/671, reg. 2(d)
192XARules applying to holding companies
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The PRA may make rules described in subsection (2) applying to financial holding companies and mixed financial holding companies that are—
a
approved under section 192R, or
b
designated under section 192T(2)(c),
where it appears to the PRA to be necessary or expedient to make the rules for the purpose of advancing any of its objectives.
2
Those rules are—
a
rules imposing requirements to be complied with by holding companies on a consolidated or sub-consolidated basis;
b
rules imposing requirements which, in the PRA's opinion, are likely to mitigate group risk;
c
rules imposing reporting requirements related to requirements described in paragraph (a) or (b);
d
rules imposing public disclosure requirements related to requirements described in paragraph (a) or (b);
e
rules imposing requirements in respect of governance arrangements;
f
rules imposing requirements in respect of remuneration policies and practices.
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5
Rules made under this section may make provision by reference to the capital requirements regulation, to instruments made under that regulation or to Directive 2013/36/EU UK law, as amended from time to time.
6
Section 137H (rules about remuneration) applies where the PRA makes rules under this section prohibiting persons, or persons of a specified description, from being remunerated in a specified way as it applies where the PRA makes general rules imposing such a prohibition.
7
Section 137I (Treasury direction to consider compliance with remuneration policies) applies where the PRA makes rules under this section requiring financial holding companies or mixed financial holding companies, or a specified description of such companies, to act in accordance with a remuneration policy as it applies where the PRA makes general rules imposing such requirements on authorised persons, but as if—
a
the references in that section to authorised persons were references to financial holding companies or mixed financial holding companies, and
b
subsection (7) of that section were omitted.
8
Section 141A (power to make consequential amendments of references to rules etc) applies to the exercise by the PRA of its power to make, alter or revoke rules under this section as it applies in relation to the exercise by the PRA of its power to make, alter or revoke rules under Part 9A.
9
In this section—
“governance arrangements” includes organisational structure, lines of responsibility and internal control mechanisms;
“group risk” means the risk that the financial position of a financial holding company or mixed financial holding company or of a member of its group may be adversely affected—
- a
by its relationships, whether financial or non-financial, with other members of the group, or
- b
by matters which affect the financial position of the group, or of a group which forms part of that group, taken as a whole (including, for example, reputational contagion).
- a
Pt. 12B inserted (28.12.2020 for specified purposes, 29.12.2020 in so far as not already in force) by The Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1406), regs. 1(3)(a)(b), 2(7) (with reg. 5)