Prudential Regulation Authority Rulebook

2.1

In this Chapter, “relevant rule” refers to each of the rules in:

1. (1) 3.5;
2. (2) 9.1; and
3. (3) 11, 12, 13, 14, 15 and 16.

2.2

Subject to 2.3 and 2.4:

1. (1) a relevant person that is not a ring-fenced body must comply with each relevant rule as if it were a ring-fenced body; and
2. (2) a relevant person must ensure each of its ring-fenced affiliates that is not a relevant person complies with each relevant rule as if it were a ring-fenced body.

2.3

In applying this Chapter to 11, the notice required under 11.1 must be provided only by a relevant person.

2.4

In applying this Chapter to 12, compliance by a ring-fenced body (RB) with 12.2 to 12.4 in relation to a ring-fenced affiliate (RA) that is not a ring-fenced body is sufficient to establish compliance by any relevant person that is a ring-fenced affiliate of RB with those rules in relation to RA.

2.5

Without prejudice to 2.2, a ring-fenced body that is required under Article 11(5) of the CRR to comply with obligations on a sub-consolidated basis must ensure that:

1. (1) responsibility for the matters in 2.6 is allocated to:
1. (a) a single ring-fenced body in its sub-consolidation group; or
2. (b) the ring-fenced holding company but only if a person employed by it or an officer of it performs a PRA senior management function in relation to a ring-fenced body in the sub-consolidation group; and
2. (2) the allocation is documented and notified to the PRA.

2.6

The matters referred to in 2.5(1) are:

1. (1) ensuring the performance by each ring-fenced body of its ring-fencing obligations; and
2. (2) ensuring the performance by each relevant person in the sub-consolidation group of its obligations under 2.2.

2.7

Without prejudice to 2.2, the person allocated with responsibility under 2.5(1) must:

1. (1) discharge the responsibility; and
2. (2) document and keep updated the arrangements and processes that enable it to discharge the responsibility.

2.8

Without prejudice to 3.4, the person allocated with responsibility under 2.5(1) must be able to demonstrate to the PRA:

1. (1) compliance with ring-fencing obligations by any ring-fenced body within the sub-consolidation group;
2. (2) compliance with relevant rules by any ring-fenced affiliate, other than a ring-fenced body, as if it were a ring-fenced body, subject to 2.3 and 2.4;
3. (3) compliance with 10.1 by any ring-fenced affiliate that is not a ring-fenced body but is a CRR firm; and
4. (4) the extent to which any ring-fenced body within the sub-consolidation group and its ring-fenced affiliates have acted, if they have chosen to do so, in accordance with any guidance given by the PRA relating to ring-fenced bodies or ring-fenced affiliates.