Banking Waivers, Modifications, Rule Permissions and Notifications

In certain cases, firms and PRA approved or designated holding companies can apply to us to vary the requirements for the amount of capital that must be held under the Capital Requirements Regulation, CRR Rules and rules applying to holding companies (as applicable).

Application submission

Send your completed application form and any relevant criteria and conditions form to PRA-waivers@bankofengland.co.uk. If you are uncertain on which form is required, you may find it helpful to discuss your application with your appropriate supervisory contact at the PRA. Dual regulated firms (firms regulated by both the PRA and the FCA) must apply to the PRA for permissions.

Application form to apply for a waiver/modification under section 138A of FSMA:

s138A waiver/modification application form

Application form to apply for a CRR Permission submitted under the Capital Requirements Regulation (CRR); or section 144G or section 192XC of FSMA:

Permissions (CRR firms): general application form

Application form to apply for a rule permission submitted under section 138BA of FSMA:

s138BA rule permission application form

We have the power to exercise various discretions on capital requirements, using the permissions powers available to us under the Capital Requirements Regulation (CRR) and sections 144G and 192XC of FSMA. 

We assess applications on a case-by-case basis against the criteria or conditions set out in the relevant CRR article or PRA rule and, where applicable, other policy materials (e.g. PRA supervisory statements). We will also take into account our statutory duty to promote the safety and soundness of firms.

Applications should be submitted in good time, and we will try to meet requests to respond by a particular date. However, this may not be possible if an application raises complex issues. We acknowledge all applications that we receive.

The consolidated list of Waivers, CRR Permissions and s138BA Rule Permissions granted by us to PRA-authorised firms and to PRA approved holding companies is now available to review on the Waivers, Modifications and Rule Permissions Webpage

Banking Rule Permissions (CRR) 

This section covers applications under the Capital Requirements Regulation (CRR); or section 144G or section 192XC of FSMA.

Note that whilst the below criteria and conditions forms will continue to be available on the webpage to allow firms to understand the format and content of the supporting documentation we expect to receive for certain types of applications, you are strongly encouraged to use the Portal (where applicable) for submissions.

In some cases, the approval of a CRR permission may mean we need to impose or vary a firm’s requirements under section 55M of the Financial Services and Markets Act (FSMA). We will consult the FCA before we do this. These requirements will be set out in the written notice.

Institutions wishing to apply under CRR should complete the CRR Permissions application form and any criteria and conditions form specific to the permission type as set out on this page.

Send your completed application and criteria and conditions forms for a CRR Permission to PRA-waivers@bankofengland.co.uk.

We have set out the format and content of the supporting documentation we expect to receive for certain types of permissions application in the documents below.

Model permissions 

Institutions intending to apply for a CRR model permission or Basel 3.1 model permission should complete the required information detailed below under the relevant rules. 

Application fees are only required for permissions for new CRR models. These are set out in the fees part of the PRA Rulebook.

Capital

Interim profit notification

Institutions seeking to include interim or year-end profits in Common Equity Tier 1 capital-prior to confirming the final profit or loss for the year-must ensure that the profits have been independently verified by auditors and that any foreseeable charges or dividend have been deducted. Once these conditions are met and profits are included in CET1 capital, institutions must notify the PRA as soon as reasonably practicable by submitting the following notification form to CRRFirms.regulatorycapital@bankofengland.co.uk.

Notification form - Inclusion of interim or year-end profits in common equity tier 1 capital under article 26(2) 

Please refer to notification for inclusion of interim or year-end profits in Common Equity Tier 1 capital.

Common Equity Tier 1 items

Institutions wishing to apply for permission under FSMA section 138BA to classify issuances of capital instruments as Common Equity Tier 1 (CET1) instruments should complete and send the s138BA application form, together with any supporting documentation required to PRA-waivers@bankofengland.co.uk.

Institutions are also required to submit a pre-issuance notification (PIN) form as part of the application. The PIN form can be found on the Capital instruments – pre/post-issuance notification (PIN) page.

Conditions for reducing own funds

Institutions wishing to apply for permission under article 77(1)(a) to reduce, redeem, repurchase, call, repay or reclassify own funds instruments, or, under article 77(1)(b) to reduce, distribute or reclassify the share premium accounts as another own funds item, should complete the s138BA application form and the accompanying Criteria and Conditions Form:

Institutions intending to submit an application for own funds permission should refer to Statement of Policy (SoP) 3/25 – The PRA’s approach to waivers and permissions under own funds (CRR) part.

Where an institution intends to reduce its own funds with replacement instruments, it should follow the requirements set out in paragraph 1(a) of appendix 5 of the SoP; if the reduction is to occur without replacing instruments, the institution should instead refer to paragraph 1(b) of appendix 5. Firms should observe the conditions in this SoP that the PRA will take into account in assessing these applications.

Groups 

Individual consolidation permission 

Institutions intending to apply for permission under CRR Article 9 for an individual consolidation permission should complete the CRR Permissions application form and the following criteria and conditions form:

Credit risk

Standardised approach 

Institutions intending to apply for permission under Article 112(6) of the Credit Risk: standardised approach (CRR) Part to apply risk weights in paragraphs (a) to (b) of Article 122(6) to unrated corporate exposures should complete the CRR Permissions application form and the following criteria and conditions form:

Simplified Standardised Approach (SSA)

Institutions intending to apply under Articles 329, 352(1) and 358(3) for an SSA permission should complete the CRR permissions application form and the following criteria and conditions form:

Internal Ratings Based Approach (IRB)

Institutions intending to apply under Rules 1.1 and 1.2; Articles 143(1) and 143(2A) for an IRB permission should refer to the following guidance:

Internal ratings based approach CRR permissions application pack (use when applying under the Basel 3.1 rules) (DOC)

Own estimates of volatility adjustments under the financial collateral comprehensive method 

Institutions intending to apply for permission under CRR Article 225 to use own estimates of volatility adjustments under the financial collateral comprehensive method should complete the CRR permissions application form and the following criteria and conditions form:

Market risk

Advanced Standardised Approach (ASA) 

Institutions intending to apply under Articles 329, 352(1) and 358(3) for an ASA permission should refer to the following guidance:

Internal Models Approach (IMA)  

Institutions intending to apply under Articles 325e(3), 325i(4), 325j(1)(b)(ii), 325q(6), 325q(7), 325t(5), 325t(6) for an IMA permission should refer to the following guidance:

Market risk internal model approach IMA data template (XLSX)

Allowances for consolidated requirements

Institutions intending to apply under CRR Article 325 for an allowances for consolidated requirements (market risk) permission should complete the CRR Permissions application form and the following criteria and conditions form:

Calculation of the overall net foreign exchange position

Institutions intending to apply under Article 352(9) of the Market Risk: General provisions part of the PRA Rulebook for a calculation of the overall net foreign exchange position permission should complete the CRR Permissions application form and the following criteria and conditions form:

Interest rate risk on derivative instruments

Institutions intending to apply under CRR Article 331 for an Interest rate risk on derivative instruments permission should complete the CRR Permissions application form and refer to the following guidance:

Credit Valuation Adjustment (CVA) risk

Standardised Approach-Credit Valuation Adjustment (SA-CVA)

Institutions intending to apply under Rule 5.1 for an SA-CVA permission should refer to the following guidance:

Liquidity

Institutions intending to apply for a liquidity permission should refer to the conditions set out in the following Statement of Policy (SoP):

Large exposures 

Core UK group permission

Institutions intending to apply for a core UK group permission under CRR Article 113(6) and Delegated Act Article 429(7) should complete the CRR Permissions application form and the following criteria and conditions form:

Non-core large exposures group permission

Institutions intending to apply for a non-core large exposures group permission under CRR Article 400(2)(c) should complete the CRR Permissions application form and the following criteria and conditions form:

CRR Article 400(2)(g)-(h)

Institutions intending to apply for permission under CRR Article 400(2)(g)-(h) should refer to the following guidance:

 

Model change notifications

Where CRR permissions have been granted for the internal ratings based (IRB) approach, the internal model method (IMM) or the internal model approach (IMA), we expect firms notifying us of changes to such approaches to complete the following pro-forma:

Pro-forma for the notification of changes to IRB, IMM and IMA permissions under the CRR
 
Where CRR permissions have been granted for the internal ratings based (IRB) approach, the internal model method (IMM) or the internal model approach (IMA), we expect firms notifying us of changes in relation to or applying for permissions under the near-final Basel 3.1 rules to complete the following pro-forma:

Pro-forma for the notification of changes to IRB, IMM and IMA permissions under the Basel 3.1 rules

Please send the completed pro-forma, together with any required supporting documentation to CRRModelPermissions@bankofengland.co.uk.

Please copy in your supervisory contact when submitting the pro-forma, including the firm’s FRN in the subject.

Basel 3.1 permissions

We have published policy statement PS1/26 – Implementation of Basel 3.1: Final rules, which contains the final policy material for the Basel 3.1 package. 

There are permissions detailed in the final rules that you may choose to apply for. 

The Basel 3.1 permissions page provides general information on new and existing permissions impacted by the Basel 3.1 package and more details on how and when to apply for certain permissions. Following the publication of PS1/26 on 20 January 2026, this webpage has been updated.

Banking Modifications by Consent (MbC)

  • To ensure the capital stack operates as intended, we have published a direction for modification by consent of 5.1 to 5.3 of the Capital Buffers Part of the PRA Rulebook.

    For more information please see Capital buffers and Pillar 2A: Modification by Consent and Model Requirements.

  • This modification is offered by us under section 138A of the Financial Services and Markets Act 2000. As stated in PRA statement on the regulatory treatment of retail residential mortgage loans under private mortgage insurance schemes with similar contractual features to the Mortgage Guarantee Scheme, the PRA is offering firms that participate in these schemes this modification by consent to provide for a single notification within one month of underwriting loans under the private retail residential mortgage scheme. If you believe your firm meets the requirements and should be able to take advantage of the modification, please read the direction and contact the Waivers and the EU Permissions Team (PRA-waivers@bankofengland.co.uk) with a suitable request.

    The PRA will confirm in writing whether the request has been granted and, if granted, will publish the approved modification direction in respect of your firm on the Financial Services Register.

     
     

  • This modification is available to credit unions that invest in a Credit Union Service Organisation (CUSO). The PRA recognises that its rules currently do not permit credit unions to invest surplus funds in CUSOs, however in recognition of the potential benefits of CUSOs in facilitating credit union growth and ensuring their sustainability, the PRA is proposing to consult on amending PRA rules in order to make it clear that investment of surplus funds in CUSOs are permitted (where the CUSO investment meets the relevant legislative requirement)1. 

    In the interim period before any proposed rule changes come into force, the PRA is making available a modification to those credit unions that have already invested in CUSOs. The PRA will contact directly those credit unions affected. 

    If a firm wishes to take advantage of this modification, it should read the direction below and contact PRA-Waivers@bankofengland.co.uk with a suitable request, copying in their usual supervision contact. The email should include the firm name and reference number.

    The PRA will confirm in writing whether the request has been granted and will publish the approved modification on the Financial Services Register.

    The direction ceases to have effect if any part of the rule listed in the direction or Chapter 6 of the Credit Unions Part of the PRA Rulebook are revoked, amended or cease to apply to the firm (other than by virtue of the direction).

    1Section 26 of the Act prohibits a credit union from having a “subsidiary”. A company is a subsidiary of a credit union if the credit union owns a majority in nominal  value of the company’s equity share capital or;  the credit union is a shareholder and controls the composition of the board. A society is a subsidiary of a credit union if the credit union is either a member of the society and controls the composition of the committee; or if the credit union can exercise a majority of the votes to which the society’s members are entitled under the rules.

  • Following the FPC’s Recommendation, the PRA and FCA are consulting on changes to the LTI flow limit requirement. From 9 July 2025, the PRA offered a modification by consent (MbC) to disapply the relevant part of the PRA Rulebook while this policy was being reviewed, to expire on 30 June 2026. The PRA is now extending this MbC to 31 December 2026, while the consultation on these changes is ongoing. Firms that are in scope of the LTI flow limit can opt-in to a modification to Rule 2.1 - 2.6 of the Housing Part of the PRA Rulebook, exempting them from having to limit their share of mortgage lending at high LTIs (>4.5x) to 15%.  

    Firms that consent to this modification will be required to: 

    • provide details (such as relevant management information) of material changes to their business plan (including the percentage share of mortgages at high LTIs it expects to approve in each of the four quarters following the date this modification takes effect), risk appetite and risk management framework (including risk limits in relation to high LTI lending) in respect of any planned increase in the share of lending at high LTIs, within one month of taking up the modification; and
    • notify the PRA on a monthly basis of its volume and share of high LTI mortgage approvals and completions within the previous month. A firm’s first submission must include information in relation to the preceding 3 months.

    Once applied for, the modification will cease to have effect at the end of 31 December 2026 or, if earlier, the date the original rule is modified or ceases to apply (which may be as a result of the PRA’s consultation).

    The availability of this MbC does not prejudge the outcome of the consultation.

    The PRA may revoke the modification or make a revised one available at any time. In deciding whether to revoke or revise the modification, we will consider whether the conditions in s.138A (4) of FSMA are no longer satisfied and whether the waiver or modification is otherwise no longer appropriate. For example, in line with the FPC’s recommendation, the PRA may revoke or revise the modification if the share of new mortgage lending at high LTIs exceeds 15% in aggregate.

    The PRA will give firms reasonable notice to comply with any updated requirements.

    Firms that wish to take advantage of this modification should consider the terms of the direction. If they want to take up the modification, they should send a short email to PRA-Waivers@bankfoengland.co.uk, copying their usual supervision contact, confirming they are requesting this modification. The email should include the Firm name and Firm Reference number. No additional supporting information is needed. 

    Firms already using this MbC can expect to be contacted by the PRA to consent to an extended version of their current MbC. 

    The PRA will confirm in writing whether the request has been granted and, if granted, it will publish the approved modification direction in respect of each firm on the Financial Services Register.

  • In light of supervisory intelligence that the PRA has received following publication of PS17/21 ‘Implementation of Basel standards’, the PRA has considered further the treatment of derivative client clearing under the Net Stable Funding Ratio (NSFR).

    The PRA has decided to offer a modification by consent (MBC) in respect of certain rules in the Liquidity (CRR) part of the PRA rulebook. The MBC extends the carve-out that is applied to derivative client clearing activities, to capture situations in which firms face a clearing broker to clear client trades, rather than facing a QCCP directly.

    A copy of the template modification direction is available above.

    Firms are invited to apply for the rule modification by email. To apply, firms should contact PRA-Waivers@bankofengland.co.uk, copying in their usual supervisory contact. The email should include the firm name(s) and reference number(s), but no supporting information is required. The PRA will confirm in writing whether the request has been granted and will publish the approved modification direction on the Financial Services Register. 

    Modifications will remain in place until the modification is revoked, varied or superseded, or the relevant rules are revoked or no longer apply to the firm.


  • In light of supervisory intelligence that the PRA has received following publication of PS17/21 ‘Implementation of Basel standards’, the PRA has considered further the treatment of assets that represent claims on or are guaranteed by European Economic Area (EEA) central or regional governments, local authorities, or public sector entities (EEA government assets) under the PRA’s liquidity regime.

    The PRA has decided to offer a modification by consent (MBC) in respect of certain rules in the Liquidity Coverage Ratio (LCR) part of the PRA Rulebook. The MBC allows any Capital Requirements Regulation (CRR) firm or CRR consolidation entity to continue treating certain EEA government assets as Level 1 HQLA for the purpose of the LCR and Net Stable Funding Ratio (NSFR).

    A copy of the template modification direction is available below.

    Firms are invited to apply for the rule modification by email. To apply, firms should contact PRA-Waivers@bankofengland.co.uk, copying in their usual supervision contact. The email should include the firm name(s) and reference number(s), but no supporting information is required. The PRA will confirm in writing whether the request has been granted and will publish the approved modification direction on the Financial Services Register.

    Modifications will take effect on or after Saturday 1 January 2022, and remain in place until the modification is revoked, varied or superseded or the relevant rules are revoked or no longer apply to the firm.


  • Policy Statement (PS) 26/20 'Capital Requirements Directive V (CRD V) confirms that firms reporting funding plans to the PRA in accordance with the EBA Guidelines for Funding Plans of Credit Institutions will be offered a modification by consent to waive the 31 December PRA107 ‘Statement of profit or loss – forecast data’ submission where both the funding plans and PRA107 are reported on the same reporting reference date.

    Firms are invited to consent to the rule modification by email, and should contact PRA-Waivers@bankofengland.co.uk, copying in their usual supervision contact. The email should include the firm name and reference number.

    The modification will come into effect for all consenting firms on Tuesday 29 December 2020.

  • We are offering a modification for CRR firms to exclude (from identification as MRTs) employees who meet the pay based criteria but are deemed not to have a material impact on the firm’s risk profile, if they choose to do so. Attached below is further guidance on the information to be provided to us when applying for this modification by consent.

    If you wish to apply for this modification, please read the direction, guidelines, and contact your supervisory contacts and our Authorisations division ( PRA-waivers@bankofengland.co.uk) with a suitable request. 

    We will confirm in writing whether the request has been granted and will publish the approved modification direction on the Financial Services Register. Where granted, the modification has effect in respect of the relevant performance year. A new application is required for each performance year.

  • The modification is offered under section 138A of the Financial Services and Markets Act 2000 (FSMA). As stated in PRA statement on the regulatory treatment of retail residential mortgage loans under private mortgage insurance schemes with similar contractual features to the Mortgage Guarantee Scheme, the PRA is offering firms that participate in these schemes this Modification by Consent to report C.14 and C14.01 on an aggregated basis for loans under these schemes.  If you believe your firm meets the requirements and should be able to take advantage of the modification, please read the direction and contact the Waivers and Permissions Team (PRA-waivers@bankofengland.co.uk) with a suitable request.

    The PRA will confirm in writing whether the request has been granted and, if granted, will publish the approved modification direction in respect of your firm on the Financial Services Register.

  • To alleviate operational burdens on firms in light of the Covid-19 outbreak, we are offering a temporary modification by consent to Rules 3.1(1) and 4.1(1) of the PRA’s Resolution Assessment Rules which would delay the first Resolvability Assessment Framework (RAF) cycle by one year.

    Each firm that wishes to take advantage of this modification should consider the terms of the direction. If they want the modified Rules to apply to their firm, they should send a short email to PRA-Waivers@bankofengland.co.uk, confirming they are consenting to the modification and include their Firm name and Firm Reference Number. No additional supporting information is needed.

     The PRA intends to consult in due course, principally with a view to aligning the dates in the Resolution Assessment Part of the PRA Rulebook with those in the modification.

    The modified Rules will apply to the Firms specified in the direction until the earlier of:

     

    1. the date on which Rules made by the Prudential Regulation Authority, following the outcome of the consultation which the PRA proposes to undertake in respect of the Resolution Assessment Part of the PRA Rulebook, become effective or;
    2. the date on which the relevant Rule is revoked or no longer applies to a Firm (in whole or in part).


     

  • The modification is given by the PRA under section 138A of the Financial Services and Markets Act 2000 (FSMA). As stated in PRA statement on the Regulatory treatment of retail residential mortgage loans under the Mortgage Guarantee Scheme, firms that participate in this scheme will be offered a modification by consent to provide for a single SRT notification to the PRA on a programme level.

    We will publish such modification by consent on the website. If you believe your firm meets the requirements and should be able to take advantage of the modification, please read the direction and contact the Waivers and the EU Permissions Team (PRA-waivers@bankofengland.co.uk) with a suitable request.

    We will confirm in writing whether the request has been granted and will publish the approved modification direction on the Financial Services Register.

  • The PRA is introducing a simplified prudential regime for small, UK banks and building societies, known as the SDDT regime. To access the simplifications under this regime, firms meeting the SDDT criteria will be able to consent to a rule modification to become an SDDT and CRR consolidation entities meeting the SDDT consolidation criteria will be able to consent to a rule modification to become an SDDT consolidation entity. For details on the SDDT criteria and SDDT consolidation criteria please refer to the Strong and Simple webpage.

    The PRA is offering the modifications from 1 January 2024.  Qualifying firms and CRR consolidation entities may provide consent to the modifications and certification of the relevant criteria from 1 January 2024 (but not before that date). 

    These are the two Modifications by Consent (MbCs) offered from 1 January 2024. The first modification relates to UK banks and building societies opting to become an SDDT and the second relates to CRR consolidation entities opting to become an SDDT consolidation entity. 

    Where a firm is part of a consolidation group, all UK banks and building societies within the consolidation group must meet the SDDT criteria and take up the modification to become an SDDT. In addition, the CRR consolidation entity must meet the SDDT consolidation criteria and take up the modification to become an SDDT consolidation entity. The modifications are offered on the condition that all firms in the consolidation group and the CRR consolidation entity are willing and able to consent to similar modifications at the same time.

    Which firms or CRR consolidation entities does this apply to?
    PRA-regulated UK banks, building societies and CRR consolidation entities must meet sets of criteria to be eligible to become SDDTs and/or SDDT consolidation entities. The criteria are set out in Chapter 2 of the SDDT Regime – General Application Part.

    What does this mean for firms or CRR consolidation entities?
    Firms become SDDTs and CRR consolidation entities become SDDT consolidation entities by taking up the PRA’s offer of a modification by consent as detailed in the Operating the Small Domestic Deposit Taker (SDDT) Regime statement of policy (SoP). 

    It would be helpful to the PRA if a firm considering becoming an SDDT speaks to its supervisor about its intentions. 

    Firms and CRR consolidation entities may use the following forms to provide the necessary consents and certifications.

    Firms and CRR consolidation entities may provide consents and certifications to the PRA on or after 1 January 2024 by sending the relevant form(s) to:  PRA-waivers@bankofengland.co.uk 

    Following receipt of the relevant consent(s) and certification(s), the PRA will confirm in writing whether it has given a modification direction. If the PRA gives a direction, it will send the direction to the relevant firm or CRR consolidation entity and will publish it on the Financial Services Register.  A modification direction takes effect on the date stated in the direction. A firm therefore becomes an SDDT from the date stated in the direction and not before (and similarly for a CRR consolidation entity becoming an SDDT consolidation entity). 

    SDDTs and SDDT consolidation entities must notify the PRA within 14 days if the SDDT criteria or SDDT consolidation criteria cease to be met. A modification ends on the date that the relevant rule is revoked or, if earlier, the date the modification is revoked.

     

     

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This page was last updated 25 August 2026