202. Power to issue directions for prudential purposes
(1) For prudential purposes, the Regulator may direct that a particular Authorised Person or Authorised Persons within a specified class —
(a) comply with any specified additional capital or liquidity requirements;
(b) apply a specific provisioning policy or treatment of Specified assets;
(c) comply with Specified limits on material risk exposures;
(d) comply with Specified limits on exposures to related parties;
(e) meet additional or more frequent reporting requirements; or
(f) take such other action as is Specified.
(2) The Regulator may direct an Affiliate of an Authorised Person or Recognised Body to take Specified steps or not to carry out Specified activities if the Regulator —
(a) is the consolidated supervisor of the Group to which the Authorised Person or Recognised Body belongs; and
(b) is satisfied that the direction is necessary or desirable for the purposes of the effective prudential supervision of the Group on a consolidated basis.
(3) A direction to an Affiliate under subsection (2) may include a requirement that the Affiliate —
(a) limit any activities it undertakes or may undertake (including closing any office that is outside the jurisdiction in which it has its principal place of business and head office) if the activities are reasonably likely to expose the Authorised Person, Recognised Body or its Group to excessive risks or risks that are not properly managed; or
(b) take such other measures as are necessary to remove any impediments to effective supervision of the Group on a consolidated basis, including a direction to take steps to restructure the Group.
(4) A direction issued under this section comes into force on the date specified in it and remains in force, subject to subsection (6), until it is revoked or varied in writing by the Regulator pursuant to subsection (5).
(5) The Regulator may, by notice, revoke or vary any direction given pursuant to this section.
(6) A direction issued to Authorised Persons within a specified class under subsection (1), including any variation made to such a direction pursuant to subsection (5), shall not remain in force for a period longer than 12 months from the date specified in the initial direction issued pursuant to subsection (1).