Prudential Regulation Authority Rulebook

2.A1

This chapter applies to a firm for the purposes of its obligations under Parts Two and Three of the CRR.

2.1

1. (1) In applying the requirements of Part One, Title II, Chapter 2 of the CRR for the purposes of prudential consolidation, a CRR consolidation entity must include the relevant proportion of an undertaking with whom it has:
1. (a) a common management relationship; or
2. (b) an Article 18(6) relationship.
2. (2) In 2.1(1), the relevant proportion is such proportion (if any) as stated in a requirement imposed on the firm in accordance with section 55M of FSMA.

[Note: Art 18(3) and (6) of the CRR]

2.2

In applying the requirements of Part One, Title II, Chapter 2 of the CRR for the purposes of prudential consolidation, a CRR consolidation entity for which the PRA is the consolidating supervisor must carry out a proportional consolidation according to the share of capital held of participations in institutions and financial institutions managed by an undertaking included in the consolidation together with one or more undertakings not included in the consolidation, where those undertakings' liability is limited to the share of capital they hold.

[Note: Art 18(4) of the CRR]

2.3

In applying the requirements of Part One, Title II, Chapter 2 of the CRR for the purposes of prudential consolidation, a CRR consolidation entity must carry out a proportional consolidation according to the share of capital held of any undertaking with whom it has an Article 18(5) relationship.

[Note: Art 18(5) of the CRR]