ELM 7.3 Consolidated capital adequacy

If:

1. (1)

   a firm (firm A) is a member of a group;

2. (2)

   another member of that group (firm B) is a firm that is subject to an FSA consolidation rule;

3. (3)

   firm B is in firm A's immediate group; and

4. (4)

   firm A is included in the scope of the consolidation under the FSA consolidation rule as it applies to firm B;

firm A must, at all times, maintain capital resources (calculated in accordance with the relevant rules) at a level that ensures that, taking into account (in the manner and to the extent provided for in those rules) the capital resources of other members of the group, firm B complies with the FSA consolidation rules applicable to it. If there is more than one firm in the group that fits the description of firm B, the obligation in this rule applies in relation to all of them.

If:

1. (1)

   ELM 7.3.1 R does not apply to a firm;

2. (2)

   the firm is a member of an EEA consolidated group or UK consolidated group;

3. (3)

   there is a full credit institution or an investment firm in that EEA consolidated group or UK consolidated group; and

4. (4)

   the undertaking in (3) is in the firm's immediate group;

the firm must, at all times, maintain capital resources (calculated in accordance with the relevant rule) at a level which ensures that, taking into account (in the manner and to the extent provided for in that rule) the capital resources of other members of the firm's group, the firm would comply with the bank consolidation rule if it applied to the firm.

If:

1. (1)

   ELM 7.3.1 R and ELM 7.3.2 R do not apply to a firm;

2. (2)

   the firm is a member of an EEA consolidated group; and

3. (3)

   that EEA consolidated group is not subject to supervision on a consolidated basis by a competent authority of another EEA State under the Banking Consolidation Directive, the E-Money Directive or the Capital Adequacy Directive;

the firm must ensure that at all times its own funds are of such an amount that its EEAgroup risk own funds are equal to or exceed its EEA group risk own funds requirement.

If:

1. (1)

   ELM 7.3.1 R, ELM 7.3.2 R and ELM 7.3.3 R do not apply to a firm; and

2. (2)

   the firm is a member of a UK consolidated group;

the firm must ensure that at all times its own funds are of such an amount that its UK group riskown funds are equal to or exceed its UK group riskown funds requirement.