Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to a BRRD undertaking.

1.2

In this Part, the following definitions shall apply:

Article 1(1)(b) entity

means a financial institution that is established in the UK when the financial institution is a subsidiary of a credit institution or investment firm, or of an Article 1(1)(c) entity or an Article 1(1)(d) entity, and is covered by the supervision of the parent undertaking on a consolidated basis in accordance with Articles 6 to 17 of CRR.

Article 1(1)(c) entity

means a financial holding company, mixed financial holding company or mixed activity holding company that is established in the UK.

Article 1(1)(d) entity

means a UK parent financial holding company or a UK parent mixed financial holding company.

competent authority

means:

1. (1) the PRA, in respect of PRA-authorised persons;
2. (2) the FCA, in respect of any other person.

conditions for early intervention

means where an institution infringes or is likely in the near future to infringe the requirements of the CRR, any of Articles 3 to 7, 14 to 17 and 24, 25 and 26 of MiFIR or requirements implementing CRD or MiFID II.

consolidating supervisor

means a competent authority responsible for the exercise of supervision on a consolidated basis of:

1. (1) a UK parent institution; or
2. (2) institutions controlled by a UK parent financial holding company or a UK parent mixed financial holding company.

extraordinary public financial support

means, support of a kind described in section 3(1) of the Banking Act 2009 that is provided in order to preserve or restore the viability, liquidity or solvency of an institution or Article 1(1)(b) entity, Article 1(1)(c) entity, Article 1(1)(d) entity or of a group of which such an institution or entity forms part.

management body

means a BRRD undertaking’s body or bodies, which are appointed in accordance with national law, which are empowered to set the BRRD undertaking’s strategy, objectives and overall direction, and which oversee and monitor management decision-making, and include the persons who effectively direct the business of the BRRD undertaking.

own funds requirement

means the requirements laid down in Articles 92 to 98 of the CRR.

parent undertaking

has the meaning given in Article 4(1)(15) of the CRR.

solvent exit

means the process through which a firm ceases to carry on its PRA regulated activities while remaining solvent.

solvent exit analysis

means a document setting out a firm’s preparations for solvent exit.

1.3

Unless otherwise defined, any italicised expression used in this Part and in the CRR has the same meaning as in the CRR.