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Part II Prudential Regulation, 8 Other Forms of Group Prudential Supervision

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

Subject(s):
Investment business — Prudential regulation — UK Financial Conduct Authority (FCA) — UK Prudential Regulation Authority (PRA)

This chapter discusses some of the more obscure types of prudential groups, and how prudential requirements apply to predominantly non-financial services groups and fund structures. It first looks at two vestigial UK regimes: the BIPRU and IPRU-INV group supervisory regimes. BIPRU firms are UK investment firms that fall outside the scope of the CRD regime and whose individual prudential requirements are governed by the Financial Conduct Authority’s (FCA) Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU). The core BIPRU rules relating to group consolidation are almost identical in substance to the CRD consolidation rules, save for necessary changes to reflect BIPRU’s ongoing application to a smaller population of firms. Meanwhile, Chapter 14 of the FCA’s Interim Prudential sourcebook for Investment Business (IPRU-INV) applies to groups comprising a securities and futures firm, and where it is not otherwise subject to consolidated supervision by the Prudential Regulation Authority (PRA), FCA or (prior to Brexit) EU competent authority. The chapter then studies the forthcoming EU investment firm group regime, which will be applicable to most EU investment firm groups that do not include credit institutions.

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