MIFIDPRU 2.3 Exemptions

A MIFIDPRU investment firm will be exempt from MIFIDPRU 8 (Disclosure) on an individual basis if:

1. (1)

   the firm has applied to the FCA in accordance with MIFIDPRU 2.3.3R;

2. (2)

   the application in (1) demonstrates to the satisfaction of the FCA that:

   1. (a)

      the firm is a SNI MIFIDPRU investment firm;

   2. (b)

      the firm is a subsidiary and is included in the supervision on a consolidated basis of an insurance undertaking or reinsurance undertaking in accordance with Rule 10.5 of the PRA Rulebook: Solvency II firms: Group Supervision;

   3. (c)

      the firm and its parent undertaking are subject to authorisation and supervision in the UK;

   4. (d)

      own funds are distributed adequately between the firm and its parent undertaking and:

      1. (i)

         there is no current or foreseen material practical or legal impediment to the prompt transfer of capital or repayment of liabilities by the parent undertaking;

      2. (ii)

         either the parent undertaking will guarantee the commitments entered into by the firm, or the risks in the firm are of negligible interest;

      3. (iii)

         the risk evaluation, measurement and control procedures of the parent undertaking include the firm; and

      4. (iv)

         the parent undertaking holds more than 50% of the voting rights attached to shares in the capital of the firm or has the right to appoint or remove a majority of the members of the firm’s management body.

3. (3)

   the PRA does not object to the exemption.

A MIFIDPRU investment firm will be exempt from MIFIDPRU 6 (Liquidity) on an individual basis where:

1. (1)

   the firm has applied to the FCA in accordance with MIFIDPRU 2.3.3R;

2. (2)

   the application in (1) demonstrates to the satisfaction of the FCA that:

   1. (a)

      the firm:

      1. (i)

         is supervised on a consolidated basis in accordance with Chapter 2 of Title II of Part One of the UK CRR; or

      2. (ii)

         is included in an investment firm group that is subject to MIFIDPRU 2.5.11R and has not obtained the exemption referred to in MIFIDPRU 2.5.19R;

   2. (b)

      the parent undertaking, on a consolidated basis, monitors and has oversight at all times over the liquidity positions of all institutions and MIFIDPRU investment firms within the group or sub‐group that are exempted from liquidity requirements on an individual basis, and ensures a sufficient level of liquidity for all of those institutions and MIFIDPRU investment firms;

   3. (c)

      the parent undertaking and the firm have entered into contracts that, to the satisfaction of the appropriate regulator, provide for the free movement of funds between the parent undertaking and the firm to enable them to meet their individual obligations and joint obligations as they become due;

   4. (d)

      there is no current or foreseen material, practical or legal impediment to the fulfilment of the contracts in (c); and

3. (3)

   the PRA does not object to the exemption if it is the consolidating supervisor of the group.

An application referred to in MIFIDPRU 2.3.1R(1) or MIFIDPRU 2.3.2R(1) must:

1. (1)

   be made using the form in MIFIDPRU 2 Annex 1R; and

2. (2)

   be submitted using the online notification and application system.