Specified conditions3
1
The following conditions are specified for the purposes of section 81D(1) of the Banking Act 2009.
2
Subject to paragraphs (3) and (4), the undertaking must be—
a
a subsidiary of the bank;
b
a parent of the bank; or
c
a group subsidiary.
3
Where the bank is a subsidiary of a mixed activity holding company (“the MAHC”) and of a financial holding company which is also a subsidiary of the MAHC—
a
the MAHC is not a parent for the purposes of paragraph (2)(b); and
b
a group subsidiary which is a subsidiary of the MAHC is not a group subsidiary for the purposes of paragraph (2)(c) unless it is—
i
a financial institution; or
ii
a subsidiary of a financial institution which is also a subsidiary of the MAHC.
4
If the undertaking is a covered bond vehicle or a securitisation company, it must be—
a
an investment firm M1; or
b
a financial institution.
5
A company which is a warehouse company within the meaning given by section 83(6) of the Finance Act 2005 or regulation 8 of the Taxation of Securitisation Companies Regulations 2006 is not a securitisation company for the purposes of paragraph (4) unless its business is carried on for the purposes of an existing asset-holding or note-issuing company.
6
In this article “group subsidiary” means a subsidiary of a parent of the bank which is not a parent or subsidiary of the bank.