Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to every firm and Chapter 8 applies only to a BRRD undertaking.

1.2

In this Part, the following definitions shall apply:

BRRD management body

means a BRRD undertaking’s body or bodies, which are appointed in accordance with national law, which are empowered to set the BRRD undertaking’s strategy, objectives and overall direction, and which oversee and monitor management decision-making, and include the persons who effectively direct the business of the BRRD undertaking.

conduct rules

means the rules in Conduct Rules 2 and 3.

disciplinary action

has the meaning given in section 64C of FSMA.

dormant account fund operator

means a firm with permission for operating a dormant account fund.

EEA financial conglomerate

means a financial conglomerate that is of a type that falls under Article 5(2) of the Financial Groups Directive.

extraordinary public financial support

means State aid, or any other public financial support at supra-national level, which, if provided for at national level, would constitute State aid, that is provided in order to preserve or restore the viability, liquidity or solvency of a BRRD undertaking or of a group of which a BRRD undertaking forms part.

financial holding company

has the meaning set out at point 20 of Article 4(1) of the CRR.

injunction

means a court order made by the High Court that prohibits a person from doing or continuing to do a certain act or requires a person to carry out a certain act.

insolvency order

means an administration order, compulsory winding up order, bankruptcy order or sequestration order.

MiFID Regulation

means Commission Regulation (EC) 1287/2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive.

mixed-activity holding company

has the meaning set out at point 22 of Article 4(1) of the CRR.

mixed financial holding company

has the meaning set out at point 21 of Article 4(1) of the CRR.

notification rule

(in relation to a firm) means a rule requiring a firm to give the PRA notice of, or information regarding, an event, but excluding a rule requiring periodic submission of a report.

occupational pension scheme

has the meaning given in Article 3(1) of the Regulated Activities Order.

operating a dormant account fund

means either of the regulated activities specified in Article 63N(1) of the Regulated Activities Order.

overseas regulator

has the meaning given in section 195(3) of FSMA.

own funds

has the meaning set out at point (118) of Article 4(1) of the CRR.

regulated entity

means one of the following:

1. (1) a credit institution;
2. (2) an insurance undertaking within the meaning of Article 13(1) of the Solvency II Directive; or
3. (3) an investment firm,

whether or not it is incorporated in, or has its head office in, an EEA State.

repurchase transaction

has the meaning given in point (83) of Article 4(1) of the CRR.

sole trader

means an individual who is a firm.

State aid

means any aid granted by an EEA State or through an EEA State’s resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods and which affects trade between EEA States.

1.3

This Part applies to incoming firms without a top-up permission as follows:

1. (1) 1 applies in full;
2. (2) 2.1-2.3 apply in so far as responsibility for the matter in question is not reserved by an EU instrument to the firm's Home State regulator;
3. (3) 2.4-2.5 apply in full;
4. (4) 2.6-2.9 apply in so far as responsibility for the matter in question is not reserved by an EU instrument to the firm's Home State regulator;
5. (5) 3-4 do not apply;
6. (6) 5.1-5.3 apply in full except that 5.2(2) does not apply to an incoming EEA firm without a top-up permission;
7. (7) 5.4 applies in so far as responsibility for the matter in question is not reserved by an EU instrument to the firm's Home State regulator;
8. (8) 5.5 applies in full; and
9. (9) 6, 7 and 9 apply in full.

1.4

This Part:

1. (1) applies with respect to the carrying on of both regulated activities and unregulated activities; and
2. (2) takes into account any activity of other members of a group of which the firm is a member.