Notice to the regulators and the Bank of England of preliminary steps120A

1

Section 120 shall apply to relevant firms as it applies to banks, except that for this purpose—

a

subsections (5) and (10) of that section have effect as if any reference to the PRA were a reference to the appropriate regulator, and

b

subsection (7) has effect as if for paragraph (b) there were substituted—

b

the Bank of England has informed the person who gave the notice that it does not intend to exercise a stabilisation power under Part 1 in relation to the firm (and Condition 5 has been met, if applicable).

2

In this section—

a

“relevant firm” means—

i

a financial holding company, investment firm, mixed financial holding company or a mixed activity holding company, or

ii

a financial institution which is a subsidiary undertaking of a bank or an entity within paragraph (a)(i);

b

“financial holding company” has the meaning given in Article 4.1(2) of the capital requirements regulation (within the meaning of section 3);

c

“financial institution” has the meaning given in Article 4.1(26) of the capital requirements regulation (within the meaning of section 3);

d

“mixed activity holding company” has the meaning given in Article 4.1(22) of the capital requirements regulation (within the meaning of section 3);

e

“mixed financial holding company” has the meaning given in Article 2.15 of Directive 2002/87/EC of the European Parliament and of the Council of 16th December 2002156 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate.

3

In this section, references to “the appropriate regulator” are—

a

to the PRA, in relation to a PRA-authorised person; and

b

to the FCA in relation to any other authorised person.