Article 2 Definitions

For the purposes of this Regulation, the following definitions apply:

1. (1)

   "resolution entity" means either of the following:

   1. (a)

      an entity established in the United Kingdom, which is identified by the resolution authority Article 40 of and Schedule 2 to the Bank Recovery and Resolution (No 2) Order 2014 as an entity in respect of which the resolution plan provides for resolution action; or

   2. (b)

      (b) an institution that is not part of a group subject to consolidated supervision pursuant to Part 6 of the Capital Requirements Regulations, in respect of which the resolution plan drawn pursuant to Article 37 of the Bank Recovery and Resolution (No 2) Order 2014 provides for resolution action;

2. (2)

   "resolution group" means the following:

   1. (a)

      a resolution entity and its subsidiaries that are not:

      1. (i)

         resolution entities themselves; or

      2. (ii)

         subsidiaries of other resolution entities; or

      3. (iii)

         entities established in a third country that are not included in the resolution group in accordance with the resolution plan and their subsidiaries;

3. (3)

   "group institution" means a group entity which is a credit institution or an investment firm;

4. (4)

   "relevant legal entity" means a group entity that either:

   1. (a)

      provides critical functions; or

   2. (b)

      represents or provides more than 5 % of any of the following:

      1. (i)

         the total risk exposure amount of the group, referred to in Article 92(3) of Regulation (EU) No 575/2013 of the European Parliament and of the Council;

      2. (ii)

         the leverage ratio total exposure measure of the group, referred to in Article 429(4) of Regulation (EU) No 575/2013;

      3. (iii)

         the operating income of the group on a consolidated basis.