BKLM242400 - Relevant entities and groups: banking groups: conditions to be met to be a banking group: Condition D

Paragraph 12(5) of Schedule 19 - Condition D

Condition D is met where:

  • the ultimate parent is a UK or foreign investment entity (as defined at BKLM242500), and
  • the group includes a ‘UK resident bank’ (see BKLM243000) or a ‘relevant foreign bank’ (see BKLM245000), and
  • the members of the relevant group include at least one non-UK resident entity which meets the following conditions:

Firstly:

it (the non-UK resident entity) is not a subsidiary of another entity apart from investment entities; such that there are no trading entities between the bank and the ultimate parent, and

Secondly:

  • where on the assumption that it were UK resident and carrying out its activities in the UK, that entity would be required to be an authorised person under section 31 FISMA with the permissions necessary in order to carry out its activities in the UK and as a result (and on the basis of its activities) would be a ‘UK resident bank’, or
  • where the non-resident UK parent is a member of a partnership which is a non-UK resident entity, the non-UK resident parent entity would be a UK resident bank where on the assumption that both the non-resident UK parent entity and the partnership were UK resident and the partnership is carrying out its activities in the UK, the partnership would be required to be an authorised person under section 31 FISMA with the permissions necessary in order to carry out its activities in the UK and as a result (and on the basis of its activities) would be a ‘UK resident bank’.

Example of Condition D (Word 28KB)