Prudential Regulation Authority Rulebook

1.

For the purposes of 3D9.1(1), 3D9.2(1), 3D9.3(1) and 3D9.4(1), equity investments of a strategic nature means equity investments for which the firm holding a participation demonstrates the following:

1. (1) that the value of the equity investment is likely to be materially less volatile for the following 12 months than the value of other equities over the same period as a result of both the nature of the investment and the influence exercised by the firm holding a participation in the related undertaking; and
2. (2) that the nature of the investment is strategic, taking into account all relevant factors, including:
   1. (a) the existence of a clear decisive strategy to continue holding the participation for a long period;
   2. (b) the consistency of the strategy referred to in (a) with the main policies guiding or limiting the actions of the undertaking;
   3. (c) the firm’s ability to continue holding the participation in the related undertaking;
   4. (d) the existence of a durable link; and
   5. (e) where the firm holding a participation is part of a group, the consistency of such strategy with the main policies guiding or limiting the actions of the group.