(1) The PRA must define the sub-categories of G-SII in accordance with this regulation and Commission Delegated Regulation (EU) 1222/2014 or any subsequent technical standards made by the PRA under the mandate in Article 464B(3) of the capital requirements regulation.

(2) There must be five or six sub-categories of G-SII.

(3) The lowest boundary and the boundaries between each sub-category must be determined by the scores under the identification methodology.

(4) The cut-off scores between adjacent sub-categories must -

(a) be defined clearly; and

(b) ensure that there is a linear relationship between the systemic significance represented by the sub-categories and the G-SII buffer rates assigned to those sub-categories.

(5) Where there are five sub-categories, the cut-off score between the highest sub-category and the sub-category immediately below it need not comply with paragraph (4)(b).

(6) The following G-SII buffer rates must be assigned to the sub-categories -

(a) 1% for the lowest sub-category;

(b) 3.5% for the highest sub-category;