BIPRU 8.2 Scope and basic consolidation requirements for UK consolidation groups
Main consolidation rule for UK consolidation groups
A firm that is a member of a UK consolidation group must comply, to the extent and in the manner prescribed in BIPRU 8.5, with the obligations laid down in GENPRU 1.2 (Adequacy of financial resources) and4 the main BIPRU firm Pillar 1 rules (but not the base capital resources requirement) on the basis of the consolidated financial position of:
424- (1)
where either Test 1A or Test 1B in BIPRU 8 Annex 1 (Decision tree identifying a UK consolidation group) apply, the parent institution in the UK6 in the UK consolidation group; or
- (2)
where either Test 1C or Test 1D in BIPRU 8 Annex 1 apply, the parent financial holding company in the UK6 or the parent mixed financial holding company in the UK63.
Further to BIPRU 8.2.1 R, a firm that is a member of a UK consolidation group must at all times ensure that the consolidated capital resources of the UK consolidation group are equal to or exceed its consolidated capital resources requirement.
The base capital resources requirement does not apply on a consolidated basis.
Definition of UK consolidation group
A firm's UK consolidation group means a1 group that is identified as a UK consolidation group in accordance with the decision tree in BIPRU 8 Annex 1 R (Decision tree identifying a UK consolidation group); the members of that group are:1
11- (1)
1where either Test 1A or Test 1B in BIPRU 8 Annex 1 R apply, the members of the consolidation group made up of the sub-group of the parent institution in the UK6 identified in BIPRU 8 Annex 1 R together with any other person who is a member of that consolidation group because of a consolidation Article 12(1) relationship or an Article 134 relationship; or
- (2)
1where either Test 1C or Test 1D in BIPRU 8 Annex 1 R apply, the members of the consolidation group made up of the sub-group of the parent financial holding company in the UK6 or the parent mixed financial holding company in the UK6 identified in BIPRU 8 Annex 1 R together with any other person who is a member of that consolidation group because of a consolidation Article 12(1) relationship or an Article 134 relationship;
3
in each case only persons included under BIPRU 8.5 (Basis of consolidation) are included in the UK consolidation group.1
For the purposes of this chapter, what would otherwise be a UK consolidation group is not a UK consolidation group if all the members of that UK consolidation group wholly form part of another UK consolidation group.