Prudential Regulation Authority Rulebook

3.1

A ring-fenced body must, in carrying on its business, ensure that it is able to take decisions independently of other members of its group.

3.2

A ring-fenced body must establish and maintain arrangements to identify and manage any conflict between:

1. (1) any duty a director or a member of senior management owes to the ring-fenced body; and
2. (2) any interest of the director or member of senior management.

3.3

A ring-fenced body must take all reasonable steps to identify and manage any conflict between its interests and those of one or more members of its group.

3.4

A ring-fenced body must be able to demonstrate to the PRA:

1. (1) its compliance with every ring-fencing obligation; and
2. (2) the extent to which it has acted, if it has chosen to do so, in accordance with any guidance given by the PRA to ring-fenced bodies and which relates to the operation of the ring-fencing obligations.

3.5

A ring-fenced body must ensure, as far as reasonably practicable, it applies the same standards to the management of its:

1. (1) exposures to any member of its group that is not a ring-fenced affiliate as it would to the management of its exposures to any person that is not a member of its group; and
2. (2) transactions with any member of its group that is not a ring-fenced affiliate as it would to the management of its transactions with any person that is not a member of its group,

to ensure that the carrying on of core activities is not adversely affected by the acts, omissions or insolvency of that other group member.