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Home > Prudential Regulation Authority > Ring-fenced bodies (RFBs) – SS8/16 UPDATED
 

Ring-fenced bodies (RFBs) – SS8/16 UPDATED

07 July 2016

1 February 2017: Content on this page has been updated see:

Ring-fenced bodies (RFBs) – SS8/16 UPDATE
 
For information only, the publication issued on 7 July 2016 is available below.

Overview

This Prudential Regulation Authority (PRA) supervisory statement is aimed at ring-fenced bodies (RFBs), as defined in Section 142A of the Financial Services and Markets Act 2000 (the Act), parent undertakings of RFBs as defined in Section 192JA of the Act and other PRA-authorised persons that are members of a group containing an RFB. The purpose of this statement is to set out the PRA’s expectations of an RFB and members of its group in relation to the ring-fencing of core activities and services.

This statement should be read alongside the PRA Rulebook, the Capital Requirements Regulation (CRR) and ring-fencing legislation set out in the Act and statutory instruments. The Ring-fenced Bodies Part of the PRA Rulebook in particular sets out PRA rules applicable to RFBs.

This supervisory statement sets out expectations for the following areas:

  • Legal structure and holdings of capital
  • Establishment of an RFB sub-group and application of requirements on a sub-consolidated basis
  • Application of capital and liquidity standards to an RFB sub-group
  • Intragroup concessions
  • Distributions
  • Intragroup transactions and exposures
  • Continuity of services and facilities of RFBs
  • Use of financial market infrastructures
  • Exceptions to excluded activities and prohibitions

Supervisory statement

The implementation of ring-fencing: prudential requirements, intragroup arrangements and use of financial market infrastructures – SS8/16

 
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