(1) The PRA may, in relation to each relevant O-SII, determine -

(a) whether or not to set a buffer rate for the O-SII; and

(b) where it does set a buffer rate, subject to paragraph (3), the level of the rate;

by applying the steps set out in paragraph (2).

(2) The steps set out in this paragraph are -

Step 1 - determining level of consolidation

The PRA must choose one of the following bases on which to apply the criteria specified in the FPC framework to the relevant O-SII -

(a) an individual basis;

(b) a sub-consolidated basis; or

(c) a consolidated basis.

Step 2 - deriving a framework buffer rate from the FPC framework

The PRA must derive a buffer rate from the FPC framework for the relevant O-SII ("a framework buffer rate") by -

(a) applying the methodology of the FPC framework to obtain a score for the relevant O-SII; and