2
Firms in scope of the framework
2.1
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2.2
Firms in scope of the O-SII buffer are narrower in scope than the list of O-SIIs, which the PRA identifies in line with its Statement of Policy ‘The PRA’s approach to identifying O-SIIs’.[3] The UK legislation implementing the O-SII buffer restricts the application of the O-SII buffer to RFBs and large building societies as defined in paragraph 2.3. This is reflected in the FPC framework.
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2.3
The PRA only applies an O-SII buffer to all banking groups containing RFBs, within the meaning of Section 142A of the Financial Services and Markets Act 2000 (FSMA), and large building societies that hold more than £25 billion in deposits (where one or more of the account holders is a small business) and shares (excluding deferred shares). Jointly, these are referred to as ‘firms that are subject to the O-SII buffer'.
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