The Capital Requirements (Amendment) (EU Exit) Regulations 2019

Article 4 (definitions) U.K.

11.—(1) Article 4 (definitions) is amended as follows.

(2) In paragraph 1—

(a) in point (7), for “Article 1(2) of Directive 2009/65/EC of the European Parliament and of the Council or an alternative investment fund (AIF) as defined in point (a) of Article 4(1) of Directive 2011/61/EU of the European Parliament and of the Council” substitute “ section 236A of FSMA M1 , or a UK AIF, an EEA AIF, a Gibraltar AIF, or a third country AIF within the meaning of regulation 2(1) of the Alternative Investment Fund Managers Regulations 2013 M2 ”;

(b) in point (26)—

(i) after “one or more of the” insert “ Annex 1 ”;

(ii) omit “of Annex I to Directive 2013/36/EU”;

(iii) for “a payment institution as defined in point (4) of Article 4 of Directive (EU) 2015/2366 of the European Parliament and of the Council” substitute “ an authorised payment institution within the meaning of regulation 2(1) of the Payment Services Regulations 2017 M3 ”;

(iv) for “, respectively, in points (f) and (g) of Article 212(1) of Directive 2009/138/EC” substitute “ in the PRA rulebook ”;

(c) for point (28) substitute— “ ‘UK parent institution’ means an institution in the United Kingdom which has an institution, a financial institution or an ancillary services undertaking as a subsidiary or which holds a participation in an institution, financial institution or ancillary services undertaking, and which is not itself a subsidiary of another institution authorised in the United Kingdom, or of a financial holding company or mixed financial holding company set up in the United Kingdom; ”;

(d) for point (29a) substitute— “ ‘UK parent investment firm’ means a UK parent institution that is an investment firm within the meaning of point (2) of this paragraph; ”;

(e) omit point (29b);

(f) for point (29c) substitute— “ ‘UK parent credit institution’ means a UK parent institution that is a credit institution within the meaning of point (1) of this paragraph; ”;

(g) omit point (29d);

(h) in point (72), in point (a), for “the procedure set out in point (a) of Article 25(4) of Directive 2014/65/EU of the European Parliament and of the Council” substitute “ paragraph 8 of Schedule 3 to Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 M4 ”;

(i) in point (128)—

(i) omit “Union or” in each place it occurs;

(ii) for “national law” in each place it occurs substitute “ the law of the United Kingdom, or any part of it, or of a third country ”;

(j) for point (130) substitute—

“‘resolution authority’ means the Bank;”;

(k) after point (130) insert—

“(130A) ‘resolution’ means the application of a stabilisation option referred to in section 1(3) of the Banking Act 2009 M5 in order to achieve one or more of the objectives referred to in section 4 of that Act;”;

(l) for point (131) substitute—

“‘resolution entity’ means either—

(a) a legal person established in the United Kingdom which is identified by the resolution authority as an entity in respect of which the resolution plan drawn up in accordance with article 40 of the second BRRD Order provides for resolution action; or

(b) an institution that is not part of a group that is subject to consolidated supervision under Part 6 of the Capital Requirements Regulations 2013 M6 , in respect of which the resolution plan drawn up in accordance with article 37 of the second BRRD Order provides for resolution action;”;

(m) for point (132) substitute—

“‘resolution group’ means a resolution entity and its subsidiaries that are not—

(a) resolution entities themselves;

(b) subsidiaries of other resolution entities; or

(c) entities established in a third country that are not included in the resolution group in accordance with the resolution plan and their subsidiaries;”;

(n) after point (132) insert—

“(132A) ‘resolution action’ means—

(a) the decision to place an institution or entity under resolution pursuant to sections 7, 81B, 81BA, 81ZBA, 81C, 81D, or 82 of the Banking Act 2009;

(b) the application of a stabilisation option referred to in section 1(3) of the Banking Act 2009; or

(c) the exercise of one or more powers conferred on the Bank by United Kingdom legislation which implemented Articles 63 to 72 of Directive 2014/59/EU;”;

(o) in point (133), for “Article 131(1) and (2) of Directive 2013/36/EU” substitute “ Part 4 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 M7 ”;

(p) in point (134) for “non-EU” in both defined terms substitute “ non-UK ”;

(q) in point (135), omit the words from “for the purpose” to the end;

(r) in point (136), for “non-EU” substitute “ non-UK ”;

(s) for point (137) substitute—

“‘bail-in tool’ means the mechanism for effecting the exercise by the resolution authority of the write-down and conversion powers in relation to liabilities of an institution under resolution, in accordance with section 12A of the Banking Act 2009;”;

(t) in point (138), for the words from “that are related to each other” to the end substitute “ that are related to each other pursuant to a common management relationship within the meaning of point (38A) ”;

(u) in point (145)—

(i) in point (b)—

(aa) omit “and Directive 2013/36/EU”;

(bb) omit the words “Member States may lower that threshold;”;

(ii) in point (c) for “Article 4 of Directive 2014/59/EU” substitute “ articles 7 and 8 of the second BRRD Order ”;

(iii) in point (f) for “European Economic Area” substitute “ United Kingdom ”;

(v) in point (146)—

(i) in point (b) for “Article 131(1) and (3) of Directive 2013/36/EU” substitute “ Part 6 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 M8 ”;

(ii) in point (c)—

(aa) omit “, in the Member State in which it is established,”;

(bb) after “institutions” insert “ in the United Kingdom ”;

(iii) in point (d) omit “and Directive 2013/36/EU”;

(w) in point (148) omit the words from “of any Member State” to the end;

(x) in point (149) for “Articles 4 and 5 of Directive 2004/109/EC of the European Parliament and of the Council” substitute “ sections 4.1 (Annual financial report) and 4.2 (Half-yearly financial reports) of chapter 4 (Periodic Financial Reporting) of the FCA's Disclosure Guidance and Transparency Rules sourcebook ”.

(3) In paragraph 1A M9 , after the definition of “Regulated Activities Order”, insert—

““the second BRRD Order” means the Bank Recovery and Resolution (No. 2) Order 2014 M10 ;”.

(4) In paragraph 4—

(a) for “EBA shall develop draft regulatory” substitute “ The FCA and PRA may each make ”;

(b) omit the words from “EBA shall submit” to the end.

Commencement Information

I1 Reg. 11 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M1 Section 236A was inserted by S.I. 2019/325.

M2 S.I. 2013/1773, as amended by S.I. 2019/328.

M3 S.I. 2017/752, as amended by S.I. 2018/1201.

M4 Schedule 3 was inserted by regulation 37 of S.I. 2018/1403.

M5 2009 c. 1. So far as is relevant for the purposes of these Regulations, this Act was amended by S.I. (

2014/3329).

M6 S.I. 2013/3115, as amended by these Regulations.

M7 S.I. 2014/894.

M8 S.I. 2014/894, as amended by these Regulations.

M9 As inserted by regulation 64(53) of S.I. 2018/1401.

M10 S.I. 2014/3348, as amended by S.I. 2018/1394.