DLG by default

57(in relation to a UK ILAS BIPRU firm (a group liquidity reporting firm) and any reporting period under SUP 16 (Reporting requirements)) the firm and each person identified in accordance with the following:

1. (a) (in a case in which the firm is the only UK ILAS BIPRU firm in its group) that person meets any of the following conditions for any part of that period:
   1. (i) that person provides material support to the firm against liquidity risk; or
   2. (ii) that person is committed to provide such support or would be committed to do so if that person were able to provide it; or
   3. (iii) the firm has reasonable grounds to believe that that person would supply such support if asked or would do so if it were able to provide it; or
   4. (iv) the firm provides material support to that person against liquidity risk; or
   5. (v) the firm is committed to provide such support to that person or would be committed to do so if the firm were able to provide it; or
   6. (vi) the firm has reasonable grounds to believe that that person would expect the firm to supply such support if asked or that the firm would do so if it were able to provide it; or
2. (b) (in a case in which the firm is not the only UK ILAS BIPRU firm in its group):
   1. (i) each of those other UK ILAS BIPRU firm; and
   2. (ii) each person identified by applying the tests in (a) separately to the firm and to each of those other UK ILAS BIPRU firms, so that applying (b) to the firm and to each of those UK ILAS BIPRU firms results in their having the same defined liquidity group.

The following provisions also apply for the purpose of this definition.

1. (c) A person is not a member of a firm's DLG by default unless it also satisfies one of the following conditions:
   1. (i) it is a member of the firm's group; or
   2. (ii) it is a securitisation special purpose entity or a special purpose vehicle; or
   3. (iii) it is an undertaking whose main purpose is to raise funds for the firm or for a group to which that firm belongs.
2. (d) Group has the meaning in paragraph (1) of the definition in the Glossary (the definition in section 421 of the Act).
3. (e) The conditions in (a) are satisfied even if the firm or person in question provides or is committed or expected to provide support for only part of the period.
4. (f) In deciding for the purpose of (a) or (b) whether the firm is the only UK ILAS BIPRU firm in its group and identifying which are the other UK ILAS BIPRU firms in its group, any group member that is a member of the group through no more than a participation is ignored.
5. (g) A firm has a DLG by default for a period even if it only has one during part of that period.
6. (h) Liquidity support may be supplied by or to the firm directly or indirectly.
7. (i) Support is material if it is material either by reference to the person giving it or by reference to the person receiving it.

(Guidance about this definition, and its inter-relation with other related definitions, is set out in SUP 16 Annex 26 (Guidance on designated liquidity groups in SUP 16.12).)