Holding company approvals

Part 12B of the Financial Services and Markets Act 2000 (FSMA) requires certain parent financial holding companies and parent mixed financial holding companies established in the UK to apply to us for approval or exemption from the new requirement to be approved.

Submitting an approval or exemption application

To submit an application, firms will need to send an email with an electronic copy of their application to us. Please send applications to PRA-FHC-Approval-Enquiries@bankofengland.co.uk

Fee

A fee of £2,500 is payable in respect of an application for approval or exemption. Please refer to Fees Part of the PRA Rulebook for more information. Applications will only be considered valid once the fee has been paid.

The preferred method for payment of fees is via BACS, however, cheques are also accepted. Further instructions are provided in the application form.

How we assess and determine applications

We will carry out an assessment consistent with Part 12B of FSMA. In making our decision, we will consult the Financial Conduct Authority.

Application timings

Holding companies established on or before Tuesday 29 December 2020

We encourage a company established in the UK as a parent financial holding company or a parent mixed financial holding company, on or before Tuesday 29 December 2020, to submit its application for approval, or exemption, in June 2021. The latest date by which a parent financial holding company or a parent mixed financial holding company benefitting from HM Treasury transitional provisions must submit an application is Monday 28 June 2021.

Holding companies established after Tuesday 29 December 2020

A parent financial holding company or a parent mixed financial holding company that was established after Tuesday 29 December 2020 must secure our prior approval, or a prior exemption, from the requirement to seek approval. Applications we receive will be assessed and determined within the statutory timelines prescribed by Part 12B FSMA. For more information, firms should contact PRA-FHC-approval-enquiries@bankofengland.co.uk.

Consolidated Pillar 2A and Buffers

Upon approval of a parent financial holding company or a parent mixed financial holding company, we will impose consolidated Pillar 2A, and where applicable, G-SII buffer requirements using the s192c FSMA powers. 

For groups whose PRA-authorised bank or designated investment firm subsidiaries have had consolidated Pillar 2A or G-SII buffer requirement imposed under s55 of FSMA, the consolidated requirements imposed on the approved parent financial holding company or parent mixed financial holding company will be the same as the consolidated Pillar 2A capital and G-SII buffer requirement currently applicable to the PRA authorised bank or designated investment firm subsidiary. The consolidated requirements currently applicable to the PRA-authorised bank or designated investment firm subsidiary will automatically cease to apply upon approval of the parent financial holding company or a parent mixed financial holding company.

Similarly where we have set expectations regarding the consolidated PRA buffer and/or liquidity buffers, we will communicate our expectation in respect of the consolidated PRA buffer and liquidity buffer to the parent financial holding company or a parent mixed financial holding company. These expectations will be the same as the consolidated PRA buffer and/or liquidity buffer currently applicable to the PRA-authorised bank or designated investment firm subsidiary. 

Capital buffers and Pillar 2A modification by consent (MBC)

To ensure the capital stack operates as intended, we have made available a modification to the Capital Buffer rules, which mirrors the existing modification applicable to the PRA authorised firm subsidiary. 

A copy of the template modification direction is available below. Parent financial holding companies and parent mixed financial holding companies will be asked to consent to the rule modification by email prior to their approval. 

This page was last updated 14 October 2021

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