Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to:

1. (1) a firm;
2. (2) a qualifying parent undertaking;
3. (3) a body corporate falling within section 192JA(2) of FSMA;
4. (4) a PRA approved parent holding company; and
5. (5) a PRA designated parent holding company.

2.1

Every provision in the PRA Rulebook must be interpreted in the light of its purpose.

2.2

In the PRA Rulebook, save as otherwise indicated in a Part of the PRA Rulebook, an expression in italics defined:

1. (1) in the PRA Rulebook Glossary has the meaning given in that glossary;
2. (2) for the purposes of FSMA has the meaning given in that Act;
3. (3) in the Interpretation Act 1978 has the meaning given in that Act.

2.2A

In the PRA Rulebook, an expression in italics that has no meaning given for the purposes of any of the following: the Part in which that expression appears, the PRA Rulebook Glossary, FSMA or the Interpretation Act 1978, but that was defined in the PRA Handbook as at 6 March 2016 has that meaning.

2.3

Save as otherwise indicated, the Interpretation Act 1978 applies to the PRA Rulebook.

2.4

A reference in the PRA Rulebook to another provision in the PRA Rulebook is a reference to that provision as amended from time to time.

2.5

In the PRA Rulebook, a rule made by the PRA under section 137G of FSMA applies to a firm with respect to the carrying on of any activities, except to the extent that a contrary intention appears.

2.6

If a firm is dissolved, but its authorisation continues to have effect under section 32 (Partnerships and unincorporated associations) of FSMA in relation to any partnership or unincorporated association that succeeds to the business of the dissolved firm, the successor partnership or unincorporated association is to be regarded as the same firm for the purposes of the PRA Rulebook unless the context otherwise requires.

2.7

Unless the context otherwise requires, any reference in these rules to:

1. (1) any provision of direct EU legislation, is a reference to it as it has effect as retained direct EU legislation;
2. (2) an EU directive is a reference to the directive as it had effect in EU law immediately before IP completion day;
3. (3) the implementation or transposition of provisions of an EU directive, is a reference to the provisions of EU-derived domestic legislation which were relied on before IP completion day for that implementation or transposition;
4. (4) an enactment which has been amended on or before IP completion day by regulations made under section 8 of the European Union (Withdrawal) Act 2018, is a reference to that enactment as so amended.

2.8

1. (1) The PRA Rulebook shall, after IP completion day, be construed, unless the contrary intention appears, as conferring rights and imposing obligations in relation to or in connection with Gibraltar corresponding to those which existed immediately before IP completion day.
2. (2) Accordingly, any provision of the PRA Rulebook which immediately before IP completion day applied in relation to or in connection with Gibraltar shall, with any necessary modification to give effect to that corresponding right or obligation, continue to apply after IP completion day; and any provision which did not so apply shall continue not to apply, unless provision indicating a contrary intention is made.
3. (3) In this rule reference to Gibraltar includes, but is not limited to, rights or obligations conferred or imposed in relation to or in connection with Gibraltar-based firms, public institutions established, persons resident, body corporates incorporated in Gibraltar and activities of UK firms in Gibraltar.
4. (4) This rule does not apply to the Depositor Protection and Policyholder Protection Parts (which contain their own application provisions for Gibraltar-based firms).
5. (5) In this rule ‘a Gibraltar-based firm’ has the same meaning as in the Financial Services and Markets Act (Gibraltar) Order 2001.

2.9

1. (1) Unless the contrary intention appears any reference in these rules to any provision of:
1. (a) CRR or an instrument made under CRR which took effect as direct EU legislation on IP completion day shall:
1. (i) where that provision has been revoked pursuant to section 3 of the Financial Services Act 2021, be a reference to the corresponding provision in the rules, and for this purpose whether a rule corresponds to a revoked provision is to be determined by reference to the document, as that document is updated from time to time, published by the PRA under section 5(4) of that Act; and
2. (ii) where that provision has not been so revoked, be a reference, subject to paragraph (2) below, to that provision as it had effect as direct EU legislation on IP completion day.
2. (b) Regulation (EU) No 575/2013 on prudential requirements for credit institutions and investment firms, shall, where that provision did not take effect as direct EU legislation on IP completion day, but has been transposed, with or without modification, into CRR rules, be a reference to that transposed provision in the rules.
2. (2) Unless the contrary intention appears any reference in CRR rules or rules made under section 192XA FSMA to a provision of CRR or an instrument made under CRR is a reference to that provision as amended from time to time.

2.10

1. (1) Subject to paragraph (3), CRR restatement provisions shall apply as their corresponding provisions would have applied in accordance with the direction made by the Prudential Regulation Authority on 28 December 2020 under Part 7 of the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (including any limitation on the duration of the direction).
2. (2) In this rule the reference to:
1. (a) a CRR restatement provision is a reference to a CRR restatement provision within the meaning of section 144E (2) of FSMA;
2. (b) a corresponding provision means the provision revoked under section 3(1) of the Financial Services Act 2021 which corresponds to the provision of the CRR restatement provision as determined by reference to the document published under section 5(4) of that Act, as that document is updated from time to time.
3. (3) This rule shall not apply to CRR restatement provisions in the Liquidity (CRR) Part, the Liquidity Coverage Ratio (CRR) Part and, insofar as the provision relates to the reporting or disclosure of liquidity, the Reporting (CRR) Part or Disclosure (CRR) Part of the PRA Rulebook.

2.11

Any reference in CRR rules or rules made under section 192XA FSMA to the granting of a waiver, approval, permission or other form of consent by the competent authority is a reference to the giving of a permission by the PRA pursuant to section 144G or section 192XC of FSMA, exercisable in accordance with the conditions as set out in those rules for the exercise of that waiver, approval, permission or other form of consent.

2.12

Nothing in the CRR, or in an instrument made under the CRR, shall prevent or otherwise restrict, expressly or impliedly, the making of:

1. (1) a CRR rule to the extent it makes provision about a matter described in section 144A(3) FSMA; or
2. (2) a rule under section 192XA FSMA,

or the exercise of any other power by the PRA in relation to any matter on which such a rule may be made, and the CRR and the instrument shall be modified accordingly.

2.13

Unless the contrary intention appears, CRR rules and rules made under section 192XA FSMA shall be read as if they formed part of CRR, and accordingly words and expressions used in those rules shall bear the meaning they have in CRR (and not the meaning in the Glossary to the Rulebook).