Prudential Regulation Authority Rulebook

5.1

A firm must treat an asset management company and an alternative investment fund manager that is a member of a financial conglomerate of which that firm is a member:

1. (1) as included in the overall financial sector for the purposes of:
1. (1) 3.3 to 4.3;
2. (2) Annex 2 (Capital adequacy calculations for financial conglomerates) and Annex 3 (Prudential rules for third country financial conglomerates); and
3. (3) any other provision of the PRA Rulebook relating to the supervision of financial conglomerates.

[Note: first paragraph of Art 30 and paragraph 1 of Art 30a of the Financial Groups Directive]

1. (2) Save in the circumstances in (4), in the case of a financial conglomerate for which the PRA is the coordinator, a firm must allocate an asset management company and an alternative investment fund manager:
1. (a) to the MIFIDPRU investment services sector where a decision to that effect has been made by the relevant member referred to in regulation 2(4) of the Financial Conglomerates Regulations;
2. (b) to the insurance sector where a decision to that effect has been made by the undertaking in the financial conglomerate that is the group member referred to in Article 4(2) of the Financial Conglomerates Directive; or
3. (c) otherwise to the smallest financial sector.
2. (3) The decision in (2):
1. (a) will apply to all asset management companies and all alternative investment fund managers that are members of the financial conglomerate from time to time;
2. (b) cannot be changed; and
3. (c) must be notified to the PRA without delay.
3. (4) Where a UCITS management company, or an asset management company or alternative investment fund manager is an investment firm, it must be allocated to the MIFIDPRU investment services sector.

[Note: second paragraph of Art 30 and Art 30a(2) of the Financial Groups Directive]