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prudential context

    1. (1) For the FCA, in relation to activities carried on by a firm, the context in which the activities have, or might reasonably be regarded as likely to have, a negative effect on:
      1. (a) the integrity of the UK financial system; or
      2. (b) the ability of the firm to meet either:
        1. (i) the "fit and proper" test in threshold condition 2E and 3D (Suitability); or
        2. (ii) the applicable requirements and standards under the regulatory system relating to the firm's financial resources.
    2. (2) For the PRA, in relation to activities carried on by a firm, the context in which the activities have, or might reasonably be regarded as likely to have, a negative effect on:
      1. (a) the safety and soundness of PRA-authorised persons; or
      2. (b) the ability of the firm to meet either:
        1. (i) the "fit and proper" test in threshold condition 5 (Suitability); or
        2. (ii) the applicable requirements and standards under the regulatory system relating to the firm's financial resources.