The Capital Requirements Regulations 2006 (revoked)

[F1 10B.— (1) This regulation applies where [F2 an appropriate regulator] is a relevant competent authority and receives a report containing the risk assessment of a banking or investment group from the EEA consolidated supervisor. U.K.

(2) The [F3 appropriate regulator] must submit to the EEA consolidated supervisor a report containing its risk assessment of each subsidiary of the group it has authorised.

(3) Subject to paragraph (7), the [F3 appropriate regulator] must take all reasonable steps to reach a joint decision with the EEA consolidated supervisor and any other relevant competent authorities on the matters referred to in regulation 10A(2) within four months of the [F3 appropriate regulator] receiving the report from the EEA consolidated supervisor.

(4) Where agreement on a joint decision cannot be reached, the [F3 appropriate regulator] may request that the EEA consolidated supervisor consults [F4 EBA].

(5) Subject to paragraph (7), if a joint decision has not been reached within four months of the [F3 appropriate regulator] receiving the report from the EEA consolidated supervisor, the [F3 appropriate regulator] must—

(a) make a decision on the level of own funds required to be held by each subsidiary it has authorised, on an individual or, where appropriate, sub-consolidated basis, in accordance with Articles 123, 124 and 136(2) of the banking consolidation directive, taking into account the views of the EEA consolidated supervisor and any advice given by [F5 EBA];

(b) where the [F3 appropriate regulator]’s decision differs significantly from any advice given by [F6 EBA], give reasons for the difference;

(c) provide the EEA consolidated supervisor with a document containing its decision; and

(d) recognise the decisions taken by the EEA consolidated supervisor and any other relevant competent authorities on the levels of own funds required to be held by the banking or investment group or its subsidiaries outside the United Kingdom, as determinative.

[F7 (5A) If, by the end of the four month period referred to in paragraph (5), any of the relevant competent authorities has referred the matter to EBA in accordance with Article 19 of the regulation establishing EBA, the [F3 appropriate regulator] must defer its decision and await any decision that EBA may take in accordance with Article 19(3) of that regulation.

(5B) If EBA takes a decision in accordance with Article 19(3) of the regulation establishing EBA, the [F3 appropriate regulator] must take its decision on the matters referred to in paragraph (5)(a) in conformity with the decision of EBA.]

(6) The [F3 appropriate regulator] may, in exceptional circumstances, make a fully reasoned written request to the EEA consolidated supervisor to update the decision on the level of own funds required to be held by any subsidiary of the group within the United Kingdom in accordance with article 136(2) of the banking consolidation directive.

(7) Where the [F3 appropriate regulator] receives the report from the EEA consolidated supervisor before 1st January 2013, for “four months” in paragraphs [F8 (3), (5) and (5A)] substitute “six months”.]

Textual Amendments

F1 Regs. 10-10B substituted for reg. 10 (31.12.2010) by The Capital Requirements (Amendment) Regulations 2010 (S.I. 2010/2628), regs. 1, 4

F2 Words in reg. 10B(1) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 118(m)(i) (with Sch. 2 para. 119)

F3 Words in reg. 10B substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 118(m)(ii) (with Sch. 2 para. 119)

F4 Word in reg. 10B(4) substituted (16.4.2012) by The Capital Requirements (Amendment) Regulations 2012 (S.I. 2012/917), regs. 1, 6(a)

F5 Word in reg. 10B(5)(a) substituted (16.4.2012) by The Capital Requirements (Amendment) Regulations 2012 (S.I. 2012/917), regs. 1, 6(a)

F6 Word in reg. 10B(5)(b) substituted (16.4.2012) by The Capital Requirements (Amendment) Regulations 2012 (S.I. 2012/917), regs. 1, 6(a)

F7 Reg. 10B(5A)(5B) inserted (16.4.2012) by The Capital Requirements (Amendment) Regulations 2012 (S.I. 2012/917), regs. 1, 6(b)

F8 Words in reg. 10B(7) substituted (16.4.2012) by The Capital Requirements (Amendment) Regulations 2012 (S.I. 2012/917), regs. 1, 6(c)