Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to a CRR firm

1. (1) with respect to the carrying on of the following from an establishment in the UK:
1. (a) regulated activities;
2. (b) activities that constitute dealing in investments as principal, disregarding the exclusion in article 15 of Regulated Activities Order;
3. (c) ancillary activities;
4. (d) in relation to MiFID business, ancillary services; and
5. (e) unregulated activities in a prudential context;
2. (2) [deleted.]
3. (3) in a prudential context with respect to activities wherever they are carried on; and
4. (4) taking into account any activity of other members of a group of which the firm is a member.

1.1A

2.1A to 2.1B do not apply to a firm with respect to the carrying on of benchmarking activities except to the extent that before IP completion day, they were made to transpose an EU instrument..

1.2

In this Part, the following definitions shall apply:

Article 21 Skills Requirements

means requirements and obligations as set out in Article 21(1)(b),(d),(g) (General Organisational Requirements) of the MODR.

other matters

means, in relation to a requirement under the MODR, matters within the scope of 1.1 that are not within the scope of that requirement.

2.1

2.1A

A MiFID investment firm must extend the arrangements required by the Article 21 Skills Requirements so they also apply with respect to other matters on the basis that references to “relevant persons” are references to relevant persons.

2.1B

A firm that is not a MiFID investment firm must comply with the Article 21 Skills Requirements on the basis set out in 2.1A and as if references to “investment firm” refer to a firm.

3.1

3.2

A firm must ensure that its senior personnel define arrangements concerning the segregation of duties within the firm and the prevention of conflicts of interest.

[Note: Art. 88 of the CRD and Art. 9(1) of MiFID II]

4.1

5.1

5.2

6.1

Where an Article 109 undertaking is a member of a consolidation group or sub-consolidation group, it must ensure that the risk management processes and internal control mechanisms at the level of the consolidation group or sub-consolidation group of which it is a member comply with the obligations set out in 3.2 on a consolidated basis or a sub-consolidated basis.

6.1A

Where this Part applies on a consolidated basis or on a sub-consolidated basis, an Article 109 undertaking must carry out consolidation to the same extent and in the same manner as it is required to comply with the obligations laid down in Parts Two to Eight of the CRR on a consolidated basis or sub-consolidated basis.

6.2

Compliance with the obligations referred to in 6.1 must enable the consolidation group or sub-consolidation group to have arrangements, processes and mechanisms that are consistent and well integrated and that any data relevant to the purpose of supervision can be produced.

[Note: Art 109(2) of the CRD]