Citation and commencement

1. These Regulations may be cited as the Financial Services and Markets Act 2000 (Prudential Regulation of FCA Investment Firms) (Definitions for the purposes of Part 9C) Regulations 2021 and come into force 21 days after the day on which these Regulations are laid before Parliament.

Interpretation

2. In these Regulations—

“the Act” means the Financial Services and Markets Act 2000 ( 2 );

“Annex 1 activities” has the meaning given in Article 4(1)(26A) of the Capital Requirements Regulation( 3 );

“Capital Requirements Regulation” means of the European Parliament and of the Council of 26 June 2013 on prudential requirements for Regulation (EU) No 575/2013 credit institutions and investment firms, and amending , as it has effect on the day on which these Regulations are made( Regulation (EU) No 648/2012 4 );

“connected undertakings” are undertakings where—

“credit institution” has the meaning given in Article 4(1)(1) of the Capital Requirements Regulation;

“FCA Handbook” means the FCA Handbook made by the Financial Conduct Authority under the Act;

“group” has the meaning given in regulation 4;

“IFPR ancillary services undertaking” means an undertaking the principal activity of which consists of—

that activity of the undertaking is ancillary to the principal activity of one or more credit institutions or investment firms which are members of the same group as the IFPR ancillary services undertaking;

“IFPR asset management company” has the meaning given to “asset management company” by the Glossary of the FCA Handbook;

“IFPR authorised payment institution” has the meaning given to “authorised payment institution” by the Glossary of the FCA Handbook;

“IFPR AIFM” has the meaning given to “AIFM” by the Glossary of the FCA Handbook;

“IFPR financial holding company” has the meaning given to “financial holding company” in article 4(1)(20) of the Capital Requirements Regulation;

“IFPR financial institution” means an undertaking which—

“IFPR investment holding company” means an undertaking which has subsidiaries and where—

“IFPR insurance holding company” has the meaning given to “insurance holding company” by the Glossary of the PRA Rulebook;

“IFPR mixed activity insurance holding company” has the meaning given to “mixed activity insurance holding company” by the definitions in the Group Supervision Part of the PRA Rulebook;

“IFPR mixed financial holding company” has the meaning given to “mixed financial holding company” by the Glossary of the FCA Handbook;

“IFPR tied agent” has the meaning given to “tied agent” by the Glossary of the FCA Handbook;

“parent undertaking” has the meaning given in regulation 3;

“PRA Rulebook” means the PRA Rulebook made by the Prudential Regulation Authority under the Act;

“relevant financial undertaking” means—

“subsidiary undertaking” has the same meaning as in section 1162 of, and Schedule 7 to, the Companies Act 2006 ( 5 );

“UK IFPR credit institution” means a credit institution which is also a “CRR firm” as defined in Article 4(1)(2A) of the Capital Requirements Regulation( 6 ).

Meaning of “Parent Undertaking” for the purposes of Part 9C Financial Services and Markets Act 2000

3. For the purposes of Part 9C of the Act, a “parent undertaking” is an undertaking that satisfies each of the following conditions—

(a) it is—

(i) a parent undertaking as defined in section 1162 of, and Schedule 7 to, the Companies Act 2006; or

(ii) a connected undertaking that is not a subsidiary undertaking or a connected undertaking of a relevant financial undertaking;

(b) except for the purposes of section 143J of the Act, it is incorporated in the United Kingdom or has its principal place of business in the United Kingdom; and

(c) it is—

(i) an FCA investment firm;

(ii) an IFPR investment holding company;

(iii) an IFPR mixed financial holding company; or

(iv) a relevant financial undertaking which is a subsidiary undertaking or connected undertaking of an undertaking in sub-paragraphs (i) to (iii) above.

Meaning of “Group” for the purposes of Part 9C of the Financial Services and Markets Act 2000

4. —(1) A group for the purposes of Part 9C of the Act comprises a parent undertaking (“undertaking A”) together with any relevant financial undertaking that—

(a) is a subsidiary undertaking of undertaking A;

(b) is a connected undertaking of undertaking A or any of undertaking A’s subsidiary undertakings; or

(c) is a subsidiary undertaking of an undertaking that is a connected undertaking of undertaking A by virtue of one of the relationships listed in (a) or (c) of the definition of “connected undertakings”.

(2) References in this regulation to a relevant financial undertaking include an undertaking established outside the United Kingdom that would be a relevant financial undertaking if it was established in the United Kingdom.