Article 3 Specified conditions

(1)

The following conditions are specified for the purposes of section 81D(1) of the Banking Act 2009.

(2)

Subject to paragraphs (3) and (4), the undertaking must be—

(a)

a subsidiary of the bank;

(b)

a parent of the bank; or

(c)

a group subsidiary.

(3)

Where the bank is a subsidiary of a mixed activity holding company (“the MAHC”) and of a financial holding company which is also a subsidiary of the MAHC—

(a)

the MAHC is not a parent for the purposes of paragraph (2)(b); and

(b)

a group subsidiary which is a subsidiary of the MAHC is not a group subsidiary for the purposes of paragraph (2)(c) unless it is—

(i)

a financial institution; or

(ii)

a subsidiary of a financial institution which is also a subsidiary of the MAHC.

(4)

If the undertaking is a covered bond vehicle or a securitisation company, it must be—

(a)

an investment firm^f1; or

(b)

a financial institution.

(5)

A company which is a warehouse company within the meaning given by section 83(6) of the Finance Act 2005 or regulation 8 of the Taxation of Securitisation Companies Regulations 2006 is not a securitisation company for the purposes of paragraph (4) unless its business is carried on for the purposes of an existing asset-holding or note-issuing company.

(6)

In this article “group subsidiary” means a subsidiary of a parent of the bank which is not a parent or subsidiary of the bank.

Annotations

Footnotes

f1: By virtue of S.I. 2014/9999 “investment firm” in the Banking Act 2009 does not include an investment firm of a description given in Article 29 of Directive 2013/36/EU (OJ No. L 176, 27.6.2013, p. 338-436), which is not subject to the initial capital requirement (EUR 730,000) specified in Article 28(2) of that Directive.