GENPRU 3 Annex 2 Prudential rules for third country groups (GENPRU 3.2.8R to GENPRU 3.2.9R)

1.1

This Part of this annex sets out the rules with which a firm must comply under GENPRU 3.2.8 R with respect to a financial conglomerate of which it is a member.

1.2

A firm must comply, with respect to the financial conglomerate referred to in paragraph 1.1, with GENPRU 3.1.29 R as1 applied under paragraph 1.3.

1.3

For the purposes of paragraph 1.2:

• 1[deleted]1
• 1 the definitions of conglomerate capital resources and conglomerate capital resources requirement that apply for the purposes of that rule are the ones from whichever of Part 111or Part 2 1of GENPRU 3 Annex 1 is specified in 1the requirement referred to in GENPRU 3.2.8 R1; and
• the rules so applied (including those in GENPRU 3 Annex 1) are adjusted in accordance with paragraph 3.1.

1.4

If the condition in Articles 7(4) and 8(4) of the Financial Groups Directive is satisfied (the financial conglomerate is headed by a mixed financial holding company) with respect to the financial conglomerate referred to in paragraph 1.1 the firm must also comply with GENPRU 3.1.35 R (as adjusted in accordance with paragraph 3.1) with respect to that financial conglomerate.

1.5

A firm must comply with the following with respect to the financial conglomerate referred to in paragraph 1.1:

• SYSC 12 (as it applies to financial conglomerates and as adjusted under paragraph 3.1); and
• GENPRU 3.1.25 R.

2.1

This Part of this annex sets out the rules with which a firm must comply under GENPRU 3.2.9 R with respect to a third-country banking and investment group of which it is a member.

2.2

A firm must comply with one of the sets of rules specified in paragraph 2.3 as adjusted under paragraph 3.1 with respect to the third-country banking and investment group referred to in paragraph 2.1.

2.3

The rules referred to in paragraph 2.2 are :

• the applicable sectoral consolidation rules in 1paragraph 6.10 of GENPRU 3 Annex 1.1

2.4

The set of rules from paragraph 2.3 that apply with respect to a particular third-country banking and investment group (as referred to in paragraph 2.1) are those that would apply if they were adjusted in accordance with paragraph 3.1.

2.5

The sectoral rules applied by Part 2 of this annex cover all prudential rules applying on a consolidated basis including those relating to large exposures

2.6

A firm must comply with SYSC 12 (as it applies to banking and investment groups and as adjusted under paragraph 3.1) with respect to the third-country banking and investment group referred to in paragraph 2.1.

3.1

The adjustments that must be carried out under this paragraph are that the scope of the rules referred in Part 1 or Part 2 of this annex, as the case may be, are amended:

• so as to remove any provisions disapplying those rules for third-country groups;
• so as to remove all limitations relating to where a member of the third-country group is incorporated or has its head office; and
• so that the scope covers every member of the third-country group that would have been included in the scope of those rules if those members had their head offices in, and were incorporated in, an EEA State.

4.1

This Part sets out the definition which a firm must apply for the purposes of this annex as it applies in relation to GENPRU 3.2.

4.2

A reference to “rules” in this annex includes any directly applicable Community regulation that is relevant to the purpose of which “rules” as used refers to.