CRR Permissions | CRR Permissions: what should an application include?
This page provides the following information on the PRA Capital Requirements Regulation (CRR) Permissions application process:
- What is a CRR Permission?
- How to apply
- When to apply
- Applicable fees
- What happens once a decision is reached
What is a CRR Permission?
The CRR is directly applicable in the United Kingdom without the need for implementation by a national legal instrument. Therefore, the PRA cannot transpose the CRR text into rules.
The PRA has the power to exercise various national discretions given to the competent authority under the applicable articles of the CRR (referred to as “CRR Permission”).
There is a CRR Permissions application form for firms to use when applying to the PRA . The PRA will assess individual applications on a case-by-case basis against the relevant criteria set out in the application CRR article or reference and, where applicable, PRA rules and supervisory statements. In assessing those applications, the PRA will also have regard to its statutory duty to promote the safety and soundness of a PRA-authorised person consistent with the purpose of the CRR. Where the PRA decides that the conditions for a CRR Permission are met, it will issue a Written Notice to the applicant.
The PRA will publish details of all CRR Permissions it approves unless it considers it inappropriate to do so.
How to apply
When seeking to apply national discretions provided for in the CRR, dual-regulated firms should apply to the PRA using the CRR Permission application form provided below under Key Resources. The PRA will grant firms a regulatory Permission to use the relevant CRR Permission in cases where it considers that the applicable legal criteria set out in the CRR are met. For further details, follow the above link to 'CRR Permission: what should an application include?'.
When to apply
Firms should note that some CRR Permissions dictate how far in advance a firm should apply for a regulatory Permission. Other CRR Permissions set the timeframe for applications to be assessed.
Firms should submit applications in good time, and the PRA will endeavour to meet requests to receive a response by a particular date. However, if an application raises complex issues this may not be possible.
All applications are acknowledged on receipt.
In some cases, the approval of a CRR Permission may mean certain additional requirements need to be applied to the firm under section 55M of the Financial Services and Markets Act (FSMA). These requirements will be set out in the CRR permission Written Notice.
Requirements placed on firms may come about either because a firm requests one under s.55M(5) or the PRA decides to impose one using s.55M(3) own-initiative requirement powers. In the latter case, the PRA will follow the procedure set out in s.55Y of FSMA.
In accordance with s.55M(5), a firm may wish to apply for a requirement related to a CRR Permission as part of the CRR Permission application form. The PRA will discuss the precise requirement with firms in the course of processing applications.
The PRA will consult the FCA before imposing or varying a requirement.
Application fees are only required for CRR Model Permissions. Firms should include the required fee as set out in the FEES manual of the Handbook when submitting these types of applications.
Submitting a CRR Permission application to the PRA
Firms should complete the CRR Permission application form and submit it, together with any required supporting documentation, to PRAfirstname.lastname@example.org
Alternatively, hard copies of the application may be sent to:
PRA Authorisations - Authorisations Division
Prudential Regulation Authority
London EC2R 6DA
What happens once a decision is reached?
If the PRA decides to grant a CRR Permission it will issue an approval letter and a Written Notice setting out the permission, to which entities the permission applies, and the time period for which the permission is valid. The PRA will also set out any relevant s55M requirements in the Written Notice for example reporting requirements.
The PRA has a statutory duty to publish details of CRR Permissions it approves unless it considers it inappropriate or unnecessary to do so.
The majority of CRR Permissions are published in full. Certain CRR Permissions are published in abridged form at the affected firm’s request. Firms can request that the CRR Permission is not published, making arguments under HMT Regulation 43 in the application form.
The PRA will update the FS register with the firm’s Written Notice detailing the CRR Permission.
A consolidated list of CRR Permission Written Notices in effect as at 1 February 2017 is available under Key Resources below.