Prudential Regulation Authority Rulebook

1.1

This Part applies to a CRR firm that receives critical services supporting critical functions if it fulfils any of the following conditions on 1 January of any year:

1. (1) the average of the firm’s total assets it was required to report for the previous 36 months in accordance with Chapters 7 and 9 of the Regulatory Reporting Part of the PRA Rulebook exceeds £10bn;
2. (2) the average of the firm’s safe custody assets it was required to report for the previous 36 months in accordance with SUP 16.14 of the FCA Handbook as amended from time to time exceeds £10bn; or
3. (3) the average total amount of received sight deposits it was required to report for the previous 36 months in accordance with the ITS on supervisory reporting, or that it would have had to report if the ITS on supervisory reporting had been in force, exceeds £350m.

1.2

This Part ceases to apply to a CRR firm to which it applies under 1.1 if the firm does not meet any of the conditions in 1.1 on 1 January in each of two consecutive years.

1.3

1.2 does not prevent this Part applying to a CRR firm on a subsequent occasion if one of the conditions in 1.1 is met again.

1.4

A firm must calculate the averages in 1.1 by adding the values it was required to report each time a report was due and dividing the total by the number of times the report was due.

1.5

In this Part, the following definitions shall apply:

core business lines

means business lines and associated services which represent material sources of revenue, profit or franchise value for a firm or for its group.

critical services

means activities, functions or services performed for one or more business units of the firm or for the firm and another member of its group, whether by the firm itself, any other group member or a person outside the firm’s group, the failure of which would lead to the collapse of or present a serious impediment to the performance of the firm’s critical functions or core business lines.

CSD

has the meaning given in Article 2(1)(1) of CSDR.

CSDR

means Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012.

excluded agreement

means a contract or other agreement for the provision of critical services to a firm:

1. (1) which is governed by the laws of any part of the United Kingdom;
2. (2) the parties to which are incorporated in, or formed under the law of any part of, the United Kingdom; and
3. (3) the parties to which belong to the same resolution group.

excluded person

means a payment system, CSD, third-country CSD, SSS or central counterparty.

group provider

in relation to a firm, means:

1. (1) a member of its group that provides critical services to it; or
2. (2) the firm itself if one of its business units provides critical services to it.

ITS on supervisory reporting

Commission Implementing Regulation (EU) No 680/2014 as amended by Commission Implementing Regulation (EU) No 2016/313 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council.

payment system

has the meaning given in section 182 of the Banking Act 2009.

resolution group

has the meaning given in section 3(1) of the Banking Act 2009.

safe custody asset

has the meaning in the FCA Handbook as amended from time to time.

SSS

has the meaning given in Article 2(1)(10A) of CSDR.

third-country CSD

has the meaning given in Article 2(1)(2) of CSDR.