Transitional provision: group supervision
8. After Part 5 of the Financial Conglomerates and Other Financial Groups (Amendment etc.) (EU Exit) Regulations 2019(1), insert—
“Part 6Transitional provision in relation to group supervision
Interpretation of Part 6
8. In this Part—
“2004 Regulations” means the Financial Conglomerates and Other Financial Groups Regulations 2004(2);
“2019 Regulations” means the Financial Conglomerates and Other Financial Groups (Amendment etc.) (EU Exit) Regulations 2019;
“conglomerates directive” means Directive 2002/87/EC of the European Parliament and the Council of 16th December 2002 on the supplementary supervision of credit institutions, insurance undertakings, and investment firms in a financial conglomerate;
“EEA co-ordinator” means a co-ordinator for a financial conglomerate as referred to in Article 10 of the conglomerates directive, which is not a competent authority of the United Kingdom;
“FCA” means the Financial Conduct Authority;
“financial conglomerate” means a group or subgroup which immediately before exit day was a financial conglomerate for the purposes of the conglomerates directive;
“PRA” means the Prudential Regulation Authority;
“third-country financial conglomerate” has the meaning given by regulation 7 of the 2004 Regulations (as amended by the 2019 Regulations).
Transitional provision
9.—(1) This regulation applies where—
(a)immediately before exit day—
(i)the co-ordinator appointed in accordance with Article 10 of the conglomerates directive in respect of a financial conglomerate is an EEA co-ordinator;
(ii)the FCA or PRA is the competent authority for the purposes of the conglomerates directive in relation to a regulated entity in that financial conglomerate; and
(b)after exit day the FCA or PRA, as the case may be, is the co-ordinator of that financial conglomerate in accordance with regulation 2 of the 2004 Regulations (as amended by the 2019 Regulations).
(2) This regulation also applies where on or after exit day—
(a)a financial conglomerate becomes a third-country financial conglomerate only by virtue of the amendments made to the definition of “third-country financial conglomerate” in regulation 7(1) of the 2004 Regulations by regulation 2(7)(c) of the 2019 Regulations; and
(b)the FCA or PRA is the regulator to whom regulation 8 of the 2004 Regulations (as amended by the 2019 Regulations) applies in relation to a regulated entity in that third-country financial conglomerate.
(3) Where this regulation applies, regulations 2, 8, 22 and 23 of the 2004 Regulations (as amended by the 2019 Regulations), which would otherwise apply to the FCA or PRA, do not apply for a period of two years beginning with exit day—
(a)unless the FCA or PRA, as appropriate, decides that it is appropriate for those regulations to be applied in a particular case; or
(b)unless or until the financial conglomerate in question ceases to be supervised by an EEA co-ordinator.”.
S.I. 2004/1862 as amended by S.I. 2013/1162.