The Capital Requirements (Amendment) (EU Exit) Regulations 2018

Article 395 (limits to large exposures)

171.—(1) Article 395 (limits to large exposures) is amended as follows.

(2) In paragraph 1—

(a) in the second sub-paragraph, for “Article 81 of Directive 2013/36/EU” substitute “applicable regulatory rules”;

(b) in the third sub-paragraph, omit “and shall inform EBA and the Commission thereof”.

(3) After paragraph 1 insert—

“1A.   In the second sub-paragraph of paragraph 1 and in Article 400(3) “applicable regulatory rules” means—

(a) where the competent authority is the FCA, rule 2.2.22 of the FCA’s Prudential sourcebook for Investment Firms;

(b) where the competent authority is the PRA, rule 6.1 of the Internal Capital Adequacy Part of the PRA rulebook.”

(4) Omit paragraph 2.

(5) In paragraph 4, omit “recognised”.

(6) In paragraph 6—

(a) for the first sub-paragraph substitute—

“In this paragraph “structural measures” means measures adopted and implemented by the competent authority that require credit institutions authorised in the United Kingdom to reduce their exposures to different legal entities depending on their activities, irrespective of where those activities are located, with a view to protecting depositors and preserving financial stability.”;

(b) in the second sub-paragraph for the words from the beginning to “deposit-guarantee schemes” substitute “Despite paragraph 1 and Article 401(1)(f), the competent authority may require the institutions of a banking group subject to structural measures which hold deposits that are covered by the UK deposit guarantee scheme”;

(c) in the fourth sub-paragraph, omit the words “and shall not entail” to the end.

(7) Omit paragraphs 7 and 8.