1. Group membership may be a source of both strength and weakness to an Authorised Person. The purpose of Group Risk requirements is to ensure that an Authorised Person takes proper account of the risks related to the Authorised Person's membership of a Group. The Group Risk requirements form a key part of the Regulator's overall approach to prudential supervision.
2. Section 8.5 imposes important restrictions on the ability of Authorised Persons in Category 3A, 3B, 3C or 4, and Financial Institutions which are not regulated in ADGM, to be a Parent of an Authorised Person in Category 1 or 5, or of a firm carrying on similar activities outside of the ADGM.