The Capital Requirements Regulations 2013

Significant branches: UK is the host EEA State

15.—(1) This regulation applies where—

(a) a credit institution, or an investment firm which is not subject to Article 95 of the capital requirements regulation, is authorised in another EEA State;

(b) the credit institution or investment firm has established a branch in the United Kingdom; and

(c) an appropriate regulator is the competent authority for that branch.

(2) The appropriate regulator may make a request to the competent authority of the home EEA State or, where appropriate, to the EEA consolidating supervisor (in which case a copy of the request shall be sent to the competent authority of the home EEA State) for the branch to be designated as significant.

(3) A request made under paragraph (2) must include reasons for considering the branch to be significant with particular regard to—

(a) the likely impact of a suspension or closure of the operations of the institution on systemic liquidity and the payment, clearing and settlement systems in the United Kingdom;

(b) the size and importance of the branch in terms of the number of clients within the context of the banking or financial system of the United Kingdom; and

(c) in the case of a branch of a credit institution, whether the market share of the branch in terms of deposits in the United Kingdom exceeds 2%.

(4) The appropriate regulator must—

(a) make every effort to reach a joint decision with the competent authority of the home EEA State and, where appropriate, the EEA consolidating supervisor, on the designation of the branch as significant; and

(b) if a joint decision is made, provide the competent authorities concerned with a document setting out the fully reasoned joint decision.

(5) If a joint decision has not been reached within two months of receipt of a request made by the appropriate regulator under paragraph (2), the appropriate regulator must—

(a) make a decision within a further period of two months on whether or not to designate the branch as significant, taking into account any views and reservations of the competent authority of the home EEA State and, where appropriate, the EEA consolidating supervisor; and

(b) provide the competent authorities concerned with a document containing its fully reasoned decision.

(6) Where a branch has been designated as significant and the competent authority of the home EEA State fails to consult the appropriate regulator in accordance with paragraph 5 of Article 51(2) of the capital requirements directive or maintains that the operational steps required by Article 86(11) of the capital requirements directive are inadequate, the appropriate regulator may refer the matter to EBA and request its assistance in accordance with Article 19 of the EBA Regulation(1).

(1)

Paragraph (6) come into force on a date to be specified in a Commission delegated act. See Schedule 1.