BKLM261000 | Relevant entities and groups: UK resident companies

Paragraph 80(2) of Schedule 19

A company may be a UK resident bank if it is a member of a partnership which meets certain conditions.

Suppose that a company (‘M’) is resident in the UK and is not an excluded company. Suppose that:

• M does not meet the financial sector condition, or

• M meets neither the deposit-taker condition nor both the wider banking condition and the capital resources condition.

Considered in isolation, M will not be a UK resident bank.

For more information, see:

• residence and financial sector conditions - see BKLM243000

• deposit-taker condition - see BKLM243110

• wider banking condition - see BKLM243120

• capital resources condition - see BKLM243160, and

• excluded entities - see BKLM250000.

But suppose that M is a member of a partnership which does meet:

• the financial sector condition, and

• either the deposit-taker condition or both the wider banking condition and the capital resources condition.

Then M will be a UK resident bank.

The capital resources condition: partnerships

Paragraphs 80(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 FPRA Rulebook) 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 average 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.