1
Application and Definitions
1.2
In this Part the following definitions shall apply:
means a relationship where undertakings are linked by a relationship within the meaning of Article 12(1) Directive 83/349/EEC.
means any risk to a firm arising from:
- (1) changes in its business, including:
- (a) the acute risk to earnings posed by falling or volatile income; and
- (b) the broader risk of a firm’s business model or strategy proving inappropriate due to macroeconomic, geopolitical, industry, regulatory or other factors; or
- (2) its remuneration policy.
means the undertakings included in the scope of consolidation pursuant to Articles 18(1), 18(8), 19(1), 19(3) and 23 of the CRR and Groups 2.1- 2.3.
has the meaning given in point (1) of Article 2 of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC Derivatives, central counterparties and trade repositories.
has the meaning given in point (14) of Article 2 of Directive 2002/87/EC on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate.
- (a) who has relationship with A of the kind specified in s. 421 of FSMA;
- (b) who is a member of the same financial conglomerate as A;
- (c) who has a Article 12(1) relationship with A;
- (d) who has a Article 12(1) relationship with any person who falls into (a);
- (e) who is a subsidiary of a person in (c) or (d);
- (f) who is member of the same consolidation group as A; or
- (g) whose omission from an assessment of the risks to A of A's connection to any person coming within (a)-(f) or an assessment of the financial resources available to such persons would be misleading.
means the risk that the financial position of a firm may be adversely affected by its relationships (financial or non-financial) with other entities in the same group or by risk which may affect the financial position of the whole group, including reputational contagion.
means the rules in Chapter 3 (Strategies, processes, and systems), Chapter 12 (Stress test and scenario analysis) and Chapter 13 (Documentation of risk assessments).
means the risk that a firm although solvent, either does not have available sufficient financial resources to enable it to meet its obligations as they fall due, or can secure such resources only at excessive cost.
means the risk that arises from fluctuations in values of or income from assets or in interest or exchange rates.
means (in accordance with point (26) of Article 1(1) of the CRD) a financial holding company which is not itself a subsidiary of an institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company set up in the same EEA State.
means (in accordance with point (24) of Article 1(1) of the CRD) an institution authorised in an EEA State which has an institution or financial institution as subsidiary or which holds a participation in such an institution or financial institution, and which is not itself a subsidiary of another institution authorised in the same EEA State or of a financial holding company or mixed financial holding company set up in the same EEA State.
means (in accordance with point (28) of Article 1(1) of the CRD) a mixed financial holding companywhich is not itself a subsidiary of an institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company set up in the same EEA State.
means:
- (1) the risk to a firm caused by its contractual or other liabilities to or with respect to a pension scheme (whether established for its employees or those of a related company or otherwise); or
- (2) the risk that the firm will make payments or other contributions to or with respect to a pension scheme because of a moral obligation or because the firm considers that it needs to do so for some other reason.
means the risk that credit risk mitigation techniques used by the firm prove less effective than expected.
means the rules in Chapter 4 to Chapter 11 of this Part.
- 01/01/2014