Prudential Regulation Authority Rulebook

3.1

If a firm receives critical services from one of its business units, it must document:

1. (1) the details of the critical services; and
2. (2) the transition arrangements for these critical services in the event of the firm being restructured or resolved.

3.2

If a firm receives critical services from another party, it must ensure the agreement governing the provision of these services:

1. (1) does not permit the other party to terminate, suspend or materially alter the services or facilities or the agreement as a result of the deterioration in the financial circumstances or the resolution of the firm or any of its group members; and
2. (2) entitles the firm to continue to receive those services during the firm’s resolution or restructuring as long as the firm fulfils its payment obligations under the agreement.

3.3

A firm must ensure the charging structure for the critical services it receives is predictable, transparent and set on arm’s length terms.

3.4

A firm must ensure access by the firm, the service provider and the PRA to the operational assets supporting critical services is not disrupted in the event of a group member being restructured or resolved.