# Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Text with EEA relevance), Article 325b: Permission for consolidated requirements

Extent: E+W+S+N.I.

1 . Subject to paragraph 2, and only for the purpose of calculating net positions and own funds requirements in accordance with this Title on a consolidated basis, institutions may use positions in one institution or undertaking to offset positions in another institution or undertaking.
2 . Institutions may apply paragraph 1 only with the permission of the competent authorities which shall be granted if all the following conditions are met:
( a ) there is a satisfactory allocation of own funds within the group;
( b ) the regulatory, legal or contractual framework in which the institutions operate guarantees mutual financial support within the group.
3 . Where there are undertakings located in third countries, all the following conditions shall be met in addition to those set out in paragraph 2:
( a ) such undertakings have been authorised in a third country and either satisfy the definition of a credit institution or are recognised third-country investment firms;
( b ) on an individual basis, such undertakings comply with own funds requirements equivalent to those laid down in this Regulation;
( c ) no regulations exist in the third countries in question which might significantly affect the transfer of funds within the group.

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Source: https://www.legislation.gov.uk/eur/2013/575/article/325b (the official version)
Page: https://openlegislation.uk/eu-regulation-2013-575/article-325b
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.