Relevant entities and groups: non-UK resident companies
Paragraph 78(2) of Schedule 19
Where an entity is a member of a partnership and that entity:
- is not resident in the UK, and
- is not an excluded entity (see BKLM250000), and
the partnership of which it is a member:
- trades in the UK through a permanent establishment in the UK, and
- meets the financial sector condition (see BKLM243000), and
then the entity will be a relevant foreign bank.
The capital resources condition: partnerships
Paragraphs 78(2), 72(5) and (7) of Schedule 19
The partnership will meet the capital resources condition if it has a ‘capital resources requirement’ (within the meaning of the FSA’s Handbook of Rules and Guidance) at the end of the chargeable period of at least £100 million.
If the partnership prepares its accounts in a currency other than sterling, the amount of its capital resources at the end of chargeable period under review is to be translated into sterling by reference to the spot rate of exchange on the balance sheet date. But you only apply this rule if the partnership’s capital resources are material to the £100 million threshold.