Prudential Regulation Authority Rulebook

8C.1

Where an own funds item has been issued by an insurance holding company, a mixed financial holding company, an intermediate holding company or an ancillary services undertaking in the group, the own funds item must be classified using the criteria for classification set out in Own Funds 3A – 3J provided that all of the following requirements are met:

1. (1) the undertaking complies with the requirements set out in Own Funds 3B.1 – 3B.13, 3E.1 – 3E.5 and 3G.1 – 3G.5;
2. (2) the own funds item is free from encumbrances and is not connected with any other transaction, which when considered with the own funds item, could result in that own funds item not satisfying the requirements set out in Own Funds 3.1 to 3.3 at group level.

8C.2

For the purposes of point (1) of 8C.1:

1. (1) the term ‘SCR’ in Own Funds 3B.1 – 3B.13, 3E.1 – 3E.5 and 3G.1 – 3G.5 shall mean the group SCR;
2. (2) the term ‘MCR’ in Own Funds 3B.1 – 3B.13, 3E.1 – 3E.5 and 3G.1 – 3G.5 includes both non-compliance with the relevant minimum referred to in 8A.2(2) and the insolvency of the insurance holding company, mixed financial holding company, intermediate holding company or ancillary services undertaking.

8C.3

For the purposes of this Chapter, references to ‘firm’ in Own Funds 3A – 3J in the context of the characteristics and features of an own funds item shall mean the insurance holding company, the mixed financial holding company, the intermediate holding company or the ancillary services undertaking which has issued the own funds item.