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Part IV Structural Regulation, 14 Group Structure and Regulation

From: The Law of Financial Services Groups

Charles H R Morris

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2021. All Rights Reserved.date: 20 September 2021

Prudential regulation — Regulators

This chapter studies the relationship between group structure and prudential regulation/resolution. Specifically, it considers how certain structures may impede supervision, resolution, or bring groups outside the scope of supervision altogether. Such structural impediments may take many different forms, and cannot therefore be specified in an exhaustive regulatory program of prohibited structures, but supervisors will remain alert to structures that raise such concerns, and may block the formation of a structure that causes such concerns. Regulators have a wide range of powers and tools at their disposal to remove impediments, or to prevent structures from arising in the first place. Such powers and tools vary from jurisdiction to jurisdiction. The most direct, explicit set of powers is the change in control regime. Through such powers, regulators can directly block the formation of a particular group structure, or require changes to a proposed group structure to be made as a condition of their approval. The chapter then looks at the concept of structural separation.

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