Regulation 66 Article 4A and 4B (insertion of new paragraphs)

After Article 4, insert—

“Article 4A

Definitions: Regulators’ rules

1.

In these Regulations—

(a)

a reference to the PRA rulebook is to the rulebook published by the PRA containing rules made by that Authority under FSMA as the rulebook has effect on exit day;

(b)

any reference to a sourcebook is to a sourcebook in the Handbook of Rules and Guidance published by the FCA containing rules made by that Authority under FSMA as the sourcebook has effect on exit day;

(c)

“Directive 2013/36/EU UK law” means the law of the United Kingdom or any part of it, which was relied on by the United Kingdom immediately before exit day to implement Directive 2013/36/EU and its implementing measures—

(i)

as they have effect on exit day, in the case of rules made by the FCA or the PRA under FSMA; and

(ii)

as amended from time to time, in all other cases.

2.

By way of an exception to paragraph 1(c), for the purposes of Articles 4(1)(25), 11(5), 81(1)(ii), 82(a)(ii) and 336(4)(c), and the references to the Directive 2013/36/EU therein, “Directive 2013/36/EU UK law” shall mean the law of the United Kingdom or any part of it, which was relied on by the United Kingdom immediately before exit day to implement Directive 2013/36/EU and its implementing measures as amended from time to time. ^f1.

Article 4B

Determination of the consolidating supervisor

1.

The identity of the consolidating supervisor is to be determined in accordance with paragraph (3) and, where applicable, paragraph (4).

2.

In this Article—

• “Case 1” means circumstances where a PRA-authorised person is the UK parent institution required by Chapter 2 of Title 2 of Part 1 of the capital requirements regulation to comply with requirements of the regulation on a consolidated basis, other than circumstances falling within Case 3;

• “Case 2” means circumstances where an FCA-authorised person is the UK parent institution required by Chapter 2 of Title 2 of Part 1 of the capital requirements regulation to comply with requirements of the regulation on a consolidated basis, other than circumstances falling within Case 3;

• “Case 3” means circumstances where a UK parent financial holding company or UK parent mixed financial holding company has a subsidiary institution which is a PRA-authorised person;

• “Case 4” means circumstances where none of the institutions controlled by a UK parent financial holding company or UK parent mixed financial holding company which are required by Chapter 2 of Title 2 of Part 1 of the capital requirements regulation to comply with requirements of the regulation on a consolidated basis, is a subsidiary institution which is a PRA-authorised person.

3.

The consolidating supervisor is—

(a)

in Case 1, the PRA;

(b)

in Case 2, the FCA;

(c)

in Case 3, the PRA; and

(d)

in Case 4, the FCA.

4.

The FCA and PRA may by agreement vary the determination of the consolidating supervisor provided for in paragraph (3) in its application to particular circumstances.

5

The FCA and PRA may exercise the power in paragraph (4) where they consider that the outcome of paragraph (3) would be inappropriate in the circumstances, having regard to the importance of the activities of the PRA-authorised persons and the FCA-authorised persons concerned.

6.

An agreement under paragraph (4) must be in or confirmed in writing.”.