CFM63440 - FA2010: risk transfer schemes: the group
The vast majority of risk transfer scheme require a group of companies so that the company that holds the relevant asset/liability that is being hedged is a different company from that which holds the liability/asset that performs the hedge. It can also be the case that the hedge, and in particular the 바카라 사이트˜overhedge바카라 사이트™ element of the hedge is split across different group companies. Consequently, it is crucial to the operation of the risk transfer provisions that schemes are viewed on a group basis.
CTA10/S937B sets out that where there is a group scheme (i.e. a scheme that involves more than one company as party to the scheme) then the 바카라 사이트˜relevant group바카라 사이트™ is Company A and any other company which is party to the scheme and is 바카라 사이트˜associated with바카라 사이트™ Company A.
The term 바카라 사이트˜associated with바카라 사이트™ is defined in a wide-ranging manner at CTA10/S937K.
바카라 사이트˜Associated with바카라 사이트™
A company is 바카라 사이트˜associated with바카라 사이트™ another company if any of the following 5 conditions are met:
Condition 1 - the 바카라 사이트˜consolidation condition바카라 사이트™
Company A and Company B are associated with each other if the financial results of both companies are required to be consolidated into accounts prepared under section 399 of the Companies Act 2006 or, if they are not to be consolidated into such accounts, then this is due to the exemption at section 399(3).
Condition 2 - connected companies
Company A and Company B are associated with each other if they are connected with each other as per the definition of connected used for loan relationship purposes (see CFM35000).
Condition 3 - major interest
Company A and Company B are associated with each other if one of those companies has a 바카라 사이트˜major interest바카라 사이트™ in the company. The meaning of 바카라 사이트˜major interest바카라 사이트™ is the same as that used for loan relationship purposes (see CFM35920).
Condition 4 - the 바카라 사이트˜consolidation condition바카라 사이트™ and a 바카라 사이트˜major interest바카라 사이트™
Company A and company B are associated with each other if company A and a third company meet the 바카라 사이트˜consolidation condition바카라 사이트™ (see condition 1 above) and that third company has a 바카라 사이트˜major interest바카라 사이트™ (see condition 3 above) in Company B.
Condition 5 - a 바카라 사이트˜major interest바카라 사이트™ and connection
Company A and Company B are associated with each other if Company A and a third company are 바카라 사이트˜connected바카라 사이트™ (see condition 2 above) and that third company has a 바카라 사이트˜major interest바카라 사이트™ in company B (see condition 3 above).