GR-8 GR-8 Close Links
GR-8.1 GR-8.1 Key Provisions
GR-8.1.1
Condition 3 of the CBB's licensing conditions specifies, amongst other things, that
licensees must satisfy the CBB that theirclose links do not prevent the effective supervision of thelicensee and otherwise pose no undue risks to thelicensee . (See Paragraph AU-2.3.1).April 2016GR-8.1.2
Applicants for a license must provide details of their
close links , as provided for under Form 1 (Application for a License). (See Paragraph AU-4.1.1).April 2016GR-8.1.3
Licensees must submit to the CBB, within 3 months of their financial year-end, a report on theirclose links (See Subparagraph BR-1.1.3(b)). The report must identify all undertakings closely linked to thelicensee , as defined in Section GR-8.2.April 2016GR-8.1.4
Licensees may satisfy the requirement in Paragraph GR-8.1.3 by submitting a corporate structure chart, identifying all undertakings closely linked to thelicensee .April 2016GR-8.1.5
Licensees must provide information on undertakings with which they are closely linked, as requested by the CBB.April 2016GR-8.2 GR-8.2 Definition of Close Links
GR-8.2.1
A
licensee ('L') has close links with another undertaking ('U'), if:(a) U is aparent undertaking of L;(b) U is asubsidiary undertaking of L;(c) U is asubsidiary undertaking of aparent undertaking of L;(d) U, or any other subsidiary undertaking of its parent, owns or controls 20% or more of the voting rights or capital of L; or(e) L, any of its parent or subsidiary undertakings, or any of the subsidiary undertakings of its parent, owns or controls 20% or more of the voting rights or capital of U.April 2016GR-8.3 GR-8.3 Assessment Criteria
GR-8.3.1
In assessing whether a
licensee's close links may prevent the effective supervision of thelicensee , or otherwise poses no undue risks to thelicensee , the CBB takes into account the following:(a) Whether the CBB will receive adequate information from thelicensee , and those with whom thelicensee hasclose links , to enable it to determine whether thelicensee is complying with CBB requirements;(b) The structure and geographical spread of thelicensee , its group and other undertakings with which it hasclose links , and whether this might hinder the provision of adequate and reliable flows of information to the CBB, for instance because of operations in territories which restrict the free flow of information for supervisory purposes; and(c) Whether it is possible to assess with confidence the overall financial position of the group at any particular time, and whether there are factors that might hinder this, such as group members having different financial year ends or auditors, or the corporate structure being unnecessarily complex and opaque.April 2016