Prudential Regulation Authority Rulebook

2.1

An institution shall comply with the Liquidity Parts on an individual basis.

[Note: This rule sets out Article 6(4) of the CRR as it applies to the Liquidity Parts]

2.2

An institution may apply to the PRA for a permission that:

1. (a) disapplies the requirement in 2.1 in full or in part; and
2. (b) provides for the requirements in the Liquidity Parts to apply:
1. (i) on a consolidated basis or a sub-consolidated basis in relation to the institution and all or some of its subsidiary institutions; or
2. (ii) to the institution and one or more other institutions that are subsidiaries of the same qualifying parent undertaking as the institution,
3. as a single liquidity sub-group, with such modifications as may be specified in the permission.

[Note: This rule corresponds to Article 8(1) of the CRR as it applied immediately before revocation by the Treasury and sets out an equivalent provision to the second paragraph of Article 11(4) of the CRR as it applies to the Liquidity Parts]

[Note: This is a permission under section 144G of FSMA to which Part 8 of the Capital Requirements Regulations applies]

2.3

For the purpose of 2.2(b)(ii), the qualifying parent undertaking must be the immediate parent undertaking of one or more of the institutions referred to in 2.2(b)(ii).

2.3A

If more than one institution subject to the Liquidity Parts is to be included in a domestic liquidity sub-group, the PRA directs that the application for permission must be made jointly by each such institution.

[Note: This is a direction under regulation 40(2) of the Capital Requirements Regulations]

2.4

A CRR consolidation entity shall comply with the Liquidity Parts on the basis of its consolidated situation.

[Note: This rule sets out Article 11(4), first paragraph of the CRR as it applies to the Liquidity Parts]

2.5

For the purposes of applying the Liquidity Parts on a consolidated basis, the terms “institution”, “credit institution” and “UK parent institution” shall include a CRR consolidation entity (if it would not otherwise have been included).

[Note: This rule sets out Article 11(2) of the CRR as it applies to the Liquidity Parts]

2.6

The expression “consolidated situation” applies for the purposes of this Part as it does for the purposes of Parts Two and Three of the CRR, except that paragraphs (3) to (6) and (9) of Article 18 do not apply.

[Note: The term “consolidation situation” is defined in Article 4(1)(47) of the CRR as it applied immediately before revocation by the Treasury.]

2.7

An institution that is required to comply with Parts Two and Three of the CRR on a sub-consolidated basis, shall comply with the Liquidity Parts on the same basis.

[Note: This rule sets out Article 11(6) of the CRR as it applies to the Liquidity Parts]