The Financial Conglomerates and Other Financial Groups Regulations 2004

Supervision of third-country groups subject to the capital adequacy directive U.K.

10.—(1) Paragraph (2) applies if—

[F1 (a) [F2 a regulator] is, for the purposes of Article 143 of the banking consolidation directive, as applied by Articles 2(1) and 37(1) of the capital adequacy directive (supervision) verifying whether a credit institution or an investment firm in a third-country group is subject to supervision by a third-country competent authority which is equivalent to that governed by the principles laid down in Articles 2(1) and 37(1) of the capital adequacy directive; or]

(b) [F2 a regulator] is, for the purposes of [F3 Article 143] of the banking consolidation directive, as applied by [F3 Articles 2(2) and 37(1)] of the capital adequacy directive (groups containing investment firms but no credit institutions), verifying whether an investment firm in a third-country group is subject to supervision, by a third-country competent authority, which is equivalent to that governed by the principles laid down in [F3 Articles 2(2) and 37(1)] of the capital adequacy directive.

(2) [F2 A regulator] must, where there is a directive requirement to do so, before completing the verification referred to in paragraph (1)—

(a) consult any competent authority which supervises an investment firm or a credit institution (if any) in that third-country group;

(b) consult [F4 the European Banking Committee] for the purposes of obtaining any applicable guidance prepared by that Committee in accordance with [F4 Article 143(2)] of that directive; and

(c) take into account any such guidance.

(3) Paragraphs (4) and (5) apply if [F2 a regulator] exercises, for the purposes of [F5 Article 143(3)] of the banking consolidation directive as applied by [F5 Articles 2 and 37(1)] of the capital adequacy directive, its powers to—

(a) vary the Part IV permission of an investment firm or credit institution in a third-country group;

(b) disapply from or apply in modified form to, such an investment firm or credit institution the rules specified in subsection (1) of [F6 section 138A] of the Act in accordance with that section;

(c) impose conditions under section 185 of the Act on a person who is, or proposes to be, a controller of such an investment firm or credit institution; or

(d) give a notice under section 186 or 187 of the Act to a person who is, or proposes to be, a controller of such an investment firm or credit institution.

(4) Where there is a directive requirement to do so, [F7 a regulator] must, before exercising its powers to take the action specified in paragraph (3)—

(a) where [F8 that regulator] would be responsible for supervision of that third-country group for the purposes of [F9 Articles 125 or 126] of the banking consolidation directive, as applied by [F9 Articles 2 and 37(1)] of the capital adequacy directive, if alternative techniques were not applied, consult the competent authorities which are involved in the supervision of any of the investment firms or credit institutions (if any) in that third-country group; and

(b) where [F8 that regulator] would not be so responsible, obtain the consent of the competent authority which would be responsible for supervision of that third-country group for the purposes of [F9 Articles 125 or 126] of the banking consolidation directive, as applied by [F9 Articles 2 and 37(1)] of the capital adequacy directive, if alternative techniques were not applied.

(5) If [F10 a regulator] decides to take that action, it must, where there is a directive requirement to do so, notify—

(a) any competent authority which supervises an investment firm or a credit institution (if any) in that third-country group; and

(b) the Commission,

that it has done so.

(6) If [F10 a regulator] has, for the purposes of Article 30 of the conglomerates directive, included an asset management company in the scope of supervision of—

(a) credit institutions and investment firms in a third-country group; or

(b) investment firms in a third-country group,

each reference in this regulation to an “investment firm” is to be treated as including a reference to that asset management company.

Textual Amendments

F1 Reg. 10(1)(a) substituted (1.1.2007) by The Capital Requirements Regulations 2006 (S.I. 2006/3221), reg. 1(1), Sch. 5 para. 1(4)(a)

F2 Words in reg. 10(1)(2)(3) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 95(10)(a) (with Sch. 2 para. 96)

F3 Words in reg. 10(1)(b) substituted (1.1.2007) by The Capital Requirements Regulations 2006 (S.I. 2006/3221), reg. 1(1), Sch. 5 para. 1(4)(b)

F4 Words in reg. 10(2)(b) substituted (1.1.2007) by The Capital Requirements Regulations 2006 (S.I. 2006/3221), reg. 1(1), Sch. 5 para. 1(4)(c)

F5 Words in reg. 10(3) substituted (1.1.2007) by The Capital Requirements Regulations 2006 (S.I. 2006/3221), reg. 1(1), Sch. 5 para. 1(4)(d)

F6 Words in reg. 10(3)(b) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 95(10)(b) (with Sch. 2 para. 96)

F7 Words in reg. 10(4) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 95(10)(c)(i) (with Sch. 2 para. 96)

F8 Words in reg. 10(4) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 95(10)(c)(ii) (with Sch. 2 para. 96)

F9 Words in reg. 10(4)(a)(b) substituted (1.1.2007) by The Capital Requirements Regulations 2006 (S.I. 2006/3221), reg. 1(1), Sch. 5 para. 1(4)(e)

F10 Words in reg. 10(5)(6) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 95(10)(a) (with Sch. 2 para. 96)