Update 7 July 2016: This supervisory statement was updated following publication of Policy Statement 20/16 ‘The implementation of ring-fencing: prudential requirements, intragroup arrangements and use of financial market infrastructures’ which included final ring-fencing rules and Supervisory Statement 8/16 ‘Ring-fenced bodies (RFBs)’. Specifically, paragraph 1.3 has been updated to take into account SS8/16 and paragraph 2.2A has been added to set out expectations of the PRA’s approach to applications by RFBs for permission to use individual consolidation. The updated SS is effective from 1 January 2019.
This supervisory statement is aimed at firms to which CRD IV applies at a consolidated level.
- its approach to consolidation, in particular individual consolidation (CRR Article 9) and the method of consolidation for entities falling within CRR Article 18(5); and
- excluding certain entities from consolidation (CRR Article 19(2)).
This statement should be read in conjunction with the CRR articles listed, the requirements in the Groups Part of the PRA Rulebook and the high-level expectations outlined in the PRA’s approach to banking supervision.