Prudential Regulation Authority Rulebook

8.1

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8.2

[deleted.]

8.3

[deleted.]

8.4

[deleted.]

8.5

[deleted.]

8.6

A CRR consolidation entity must identify each important group business service.

8.7

A CRR consolidation entity must set an impact tolerance for each important group business service.

8.8

A CRR consolidation entity must assess whether each member of the CRR consolidation entity’s consolidation group providing each important group business service could remain within the impact tolerance set for that important group business service in the event of a severe but plausible disruption to its operations.

8.9

The impact tolerance set for each important group business service must specify the first point at which a disruption to the important group business service would pose a risk to:

1. (1) where any member of the CRR consolidation entity’s consolidation group is an O-SII, the stability of the UK financial system; or
2. (2) the safety and soundness of any CRR firm within the CRR consolidation entity’s consolidation group.

8.10

The impact tolerance set for each important group business service must specify the length of or point in time, in addition to any other relevant metrics, for which a disruption to that important group business service can be tolerated.

8.11

A CRR consolidation entity must have in place sound, effective and comprehensive strategies, processes and systems that enable it adequately to:

1. (1) identify each important group business service;
2. (2) set an impact tolerance for each important group business service; and
3. (3) assess whether each member of the CRR consolidation entity’s consolidation group providing each important group business service could remain within the impact tolerance set for that important group business service in the event of a severe but plausible disruption to its operations.

8.12

A CRR consolidation entity must ensure that its management body approves:

1. (1) the important group business services identified in compliance with this Chapter;
2. (2) the impact tolerances set in compliance with this Chapter; and
3. (3) the assessment undertaken in compliance with this Chapter.

8.13

The strategies, processes and systems required by this Chapter must be proportionate to the nature, scale and complexity of the consolidation group’s activities.

8.14

A CRR consolidation entity must comply with 8.6 to 8.13 within a reasonable time of the rules coming into effect and in any event by no later than 30 June 2022.