close links

1. (1) (in relation to MiFID businessor in FUND) a situation in which two or more persons are linked by:
   1. (a) participation which means the ownership, direct or by way of control, of 20% or more of the voting rights or capital of an undertaking;
   2. (b) control which means the relationship between a parent undertaking and a subsidiary, in all the cases referred to in Article 1(1) and (2) of Directive 83/349/EEC, or a similar relationship between any person and an undertaking, any subsidiary undertaking of a subsidiary undertaking also being considered a subsidiary of the parent undertaking which is at the head of those undertakings.

A situation in which two or more persons are permanently linked to one and the same person by a control relationship is also to be regarded as constituting a close link between such persons.[Note: article 4(1)(31) of MIFID and article 4(1)(e) of AIFMD]

1. (2) (except where (1) applies and except in SUP 3 (Auditors) and SUP 4 (Actuaries)) (in accordance with paragraph 3(2) in Schedule 6 to the Act (Close links)) the relationship between a person ("A") and another person ("CL") which exists if:
   1. (a) CL is a parent undertaking of A; or
   2. (b) CL is a subsidiary undertaking of A; or
   3. (c) CL is a parent undertaking of a subsidiary undertaking of A; or
   4. (d) CL is a subsidiary undertaking of a parent undertaking of A; or
   5. (e) CL owns or controls 20% or more of the voting rights or capital of A; or
   6. (f) A owns or controls 20% or more of the voting rights or capital of CL.
2. (3) (in SUP 3 (Auditors) and SUP 4 (Actuaries)) (in accordance with section 343(8) of the Act (Information given by auditor or actuary to a regulator: persons with close links)) the relationship in (2), disregarding (e) and (f).