# The Capital Buffers and Macro-prudential Measures Regulations 2025, Regulation 14: Interpretation of Part 3


(1) In this Part—
“buffer rate” has the meaning given in regulation 16(2);
“CRR rules” has the meaning given in section 144A (CRR rules) of FSMA 2000;
“financial holding company” has the meaning given in section 192O (interpretation) of FSMA 2000;
“FPC framework” has the meaning given in regulation 17(1);
“large building society” means a building society where the sum total of the following two values exceeds the amount specified in article 12(1) (core deposit level condition) of the 2014 Order—
(a) the value of shares issued by the building society that are not deferred shares, and
(b) the value of deposits held in accounts with the building society where one or more of the account holders is a small business;
“mixed financial holding company” has the meaning given in section 192O (interpretation) of FSMA 2000;
“O-SII” means other systemically important institution (see regulation 15);
“parent undertaking” has the meaning given in section 420 (parent and subsidiary undertaking) of FSMA 2000;
“relevant O-SII” means an O-SII, or a part of an O-SII, which is—
(a) a ring-fenced body, or
(b) a UK deposit-taker (other than a building society) which satisfies—
(i) the minimum core deposit level condition, and
(ii) the trading assets condition,
(c) a large building society, or
(d) a financial holding company or a mixed financial holding company which—
(i) has a ring-fenced body or a large building society as a subsidiary, and
(ii) is required, whether by the PRA by a direction under section 192C (power to direct qualifying parent undertaking) of FSMA 2000 or otherwise, to comply with the requirements of the Capital Requirements Regulation and CRR rules on a sub-consolidated basis, or
(e) a financial holding company or a mixed financial holding company which—
(i) is the parent undertaking of a UK deposit-taker which satisfies both the minimum core deposit level condition and the trading assets condition, and
(ii) is required, whether by the PRA by a direction under section 192C (power to direct qualifying parent undertaking) of FSMA 2000 or otherwise, to comply with the requirements of the Capital Requirements Regulation and CRR rules on a consolidated or sub-consolidated basis.
(2) In this regulation—
(a) “building society” has the meaning given in section 119 (interpretation) of the Building Societies Act 1986;
(b) “the 2014 Order” means the Financial Services and Markets Act 2000 (Ring-fenced Bodies and Core Activities) Order 2014.
(3) For the purposes of the definition of “large building society” in paragraph (1)—
(a) “deferred shares”, “deposit” and “share” have the meanings given in section 119 (interpretation) of the Building Societies Act 1986;
(b) “small business” has the meaning given in section 7(10) (the funding limit) of the Building Societies Act 1986.
(4) For the purposes of the definition of “relevant O-SII” in paragraph (1)—
(a) “core deposit” has the meaning given in article 2(2) (circumstances in which accepting a deposit is not a core activity) of the 2014 Order;
(b) “minimum core deposit level condition” means—
(i) in the case of a UK deposit-taker which is not a member of a group, the condition that, at any particular time, the total core deposits of the UK deposit-taker exceed £35 billion,
(ii) in the case of a UK deposit-taker which is a member of a group, the condition that, at any particular time, the sum of the total core deposits for each member of the group that is a relevant group member exceed £35 billion;
(c) “relevant group member” means the member of a group which—
(i) is a UK deposit-taker, and
(ii) does not have permission under Part 4A of FSMA 2000 to carry on the regulated activity of effecting or carrying out contracts of insurance as principal;
(d) “ring-fenced body” has the meaning given in section 142A (ring-fenced body) of FSMA 2000;
(e) “trading assets condition” has the meaning given in article 13A(1) (trading assets condition) of the 2014 Order;
(f) “UK deposit-taker” has the meaning given in article 1(3) (citation, commencement and interpretation) of the 2014 Order;
(g) for the purpose of determining whether the minimum core deposit level condition is satisfied—
(i) core deposits denominated in a currency other than sterling must be converted into sterling by reference to an appropriate spot rate of exchange;
(ii) a spot rate of exchange is appropriate if it is the middle spot exchange rate which—
(aa) prevails on the London foreign exchange market at 4pm on the day on which the core deposits are calculated for the purpose of the minimum core deposit level condition, and
(bb) is ascertained in accordance with the customary practices of that market.

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Source: https://www.legislation.gov.uk/uksi/2025/653/regulation/14 (the official version)
Page: https://openlegislation.uk/capital-buffers-and-macro-prudential-measures-regulations-2025/regulation-14
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.