3
Persons who effectively direct the business
3.1
The persons referred to in Chapter 3 of the Internal Governance of Third Country Branches Part of the PRA Rulebook should either be executive directors or persons granted executive powers by, and who report to, the governing body of the third country head office.
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3.2
The PRA requires all third country branches to have at least one individual approved as a bespoke Senior Management Function (SMF) known as the Head of Overseas Branch (SMF19) with the option of having more than one individual if they elect to do so as set out in PS20/15 and PS29/15.[9] The individual(s) performing the SMF19 should have the highest degree of individual decision-making authority within the third country branch over activities and areas subject to UK regulation.
Footnotes
- 9. PRA Policy Statement 20/15, ‘Strengthening individual accountability in banking: UK branches of Non-EEA banks’, August 2015: www.bankofengland.co.uk/pra/Pages/publications/ps/2015/ps2015.aspx, and PRA Policy Statement PS29/15, ‘Strengthening individual accountability in banking: UK branches of non-EEA banks’, December 2015: www.bankofengland.co.uk/pra/Pages/publications/ps/2015/ps2915.aspx.
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3.3
The PRA expects a firm as a whole to ensure that its management is undertaken by at least two persons who satisfy the criteria in Article 91 of CRD IV.[10]
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