The Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014

PART 5 O-SIIs

Designated authority

29.  The PRA is the authority responsible for identifying O-SIIs.

O-SIIs: location and nature

30.—(1) An O-SII must be—

(a) a person with permission to carry on a regulated activity for the purposes of Part 4A of FSMA; or

(b) a person established in the United Kingdom.

(2) An O-SII must also be—

(a) an EEA parent institution;

(b) an EEA parent financial holding company;

(c) an EEA parent mixed financial holding company; or

(d) an institution.

Identification of O-SIIs

31.—(1) In order to assess whether a particular body (“the relevant body”) is an O-SII, the PRA must base its assessment on the systemic importance of the relevant body on an individual, sub-consolidated or consolidated basis.

(2) The assessment of systemic importance must include a consideration of one or more of the following criteria—

(a) the size of the relevant body;

(b) the importance of the relevant body to economy of the United Kingdom or the European Union;

(c) the significance of the relevant body’s cross-border activities; and

(d) the interconnectedness of the relevant body, or the group to which it belongs, with the financial system.

Notification, publication and review

32.—(1) The PRA must provide the names of the O-SIIs it has identified to the Commission, the ESRB and EBA.

(2) The PRA must publish an up-to-date list of the names of the O-SIIs it has identified.

(3) The PRA must review its identification of O-SIIs annually and report the results of its review to the bodies concerned, the Commission, the ESRB and EBA.

Appeals

33.  Where a person is aggrieved at the PRA’s decision that the person is, or is not, an O-SII, then the person may refer the matter to the Tribunal.

No requirement to maintain an O-SII buffer

34.  No O-SII may be required to maintain an O-SII buffer.