Available waivers and modifications by consent
The following waivers and modifications by consent are available:
7 May 2020 - Modification by consent of the Resolution Assessment Part of the PRA Rulebook: Rules 3.1(1) and Rule 4.1 (1)
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:
- 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;
- the date on which the relevant Rule is revoked or no longer applies to a Firm (in whole or in part).
4 May 2020 – Modification by consent of the exclusion of loans under the Bounce Back Loan scheme from the calculation of the total exposure measure of the Leverage Ratio.
We published a statement on credit risk mitigation eligibility and leverage ratio treatment of loans under the Bounce Back Loan Scheme. We are offering a modification by consent for banks subject to the UK Leverage Ratio Part of the PRA Rulebook to exclude loans under this scheme from the leverage ratio total exposure measure, if they choose to do so.
9 April 2020 – Modification by consent of the calculation of the total exposure measure of the Leverage Ratio
We note incoming changes in the amending Regulation to the Capital Requirements Regulation. We are offering a modification by consent so that banks which are subject to the UK Leverage Ratio would be required to apply this article (outlined in the below modification), for the purpose of PRA rules, if they choose to do so.
8 April 2020 – Modification by consent of the Credit Union Part of the PRA Rulebook, Rule 3.11.
This modification is available to all credit unions authorised by the PRA.
We have sent a letter to all PRA-regulated credit unions inviting them to consent to a modification of Rule 3.11 of the Credit Unions Part of the PRA Rulebook in accordance with the direction available below.
Each credit union that wishes to take advantage of this modification should consider the terms of the direction. If they want the modified rule to apply to their credit union, they should send a short email to firstname.lastname@example.org, confirming they are consenting to the modification and including their CU name and Firm Reference Number. No supporting information is needed.
The modified rule will apply to those credit unions specified in Section A of the direction until Friday 1 January 2021.
13 September 2019 – Waiver by consent: Continuity of Access rules (updates from 7 October 2016 and September 2018)
For information: The current waiver by consent (and individual waivers) for the Continuity of Access rules expires on Sunday 1 December 2019. Deposit-takers should consider whether they meet one of the three updated cases to be eligible for the new waiver (described in the waiver by consent of the Continuity of Access rules above) and whether they wish to request the waiver by consent.
26 July 2018 - Modification by consent of the Solvency II Group Supervision rules 20.1 and 20.2 with reference to US-parented undertakings
6 July 2018 - Modification by consent of Solvency II Reporting 2.2(1)
2 February 2018 - Modification by consent of Fitness and Propriety 2.7
December 2014 - Supervision (SUP)
14 October 2019: We have removed the ‘Modification by consent of SUP 16.12.5R (Note 5), SUP 16.12.15BR (Note 3), SUP 16.12.22CR (Note 3) and SUP 16.12.25CR (Note 3)’ and the ‘Direction for modification by consent of SUP’, as these are no longer available.
Modification by consent: PRA Rulebook Capital Buffers
(This should be read and used in conjunction with the Voluntary Requirement – Capital Buffers and Pillar 2A Model Requirements. See also the note below.)
Supplementary information and forms
Note: Voluntary Requirement – Capital Buffers and Pillar 2
As stated in Supervisory Statement 31/15 ‘The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP)’ (and as amended with effect from 1 January 2018 pursuant to Policy Statement 30/17 ‘Pillar 2A capital requirements and disclosure’), firms to which the CRR applies will be invited to apply for a voluntary requirement (VREQ) under section 55M of the Financial Services and Market Act 2000 preventing them from meeting their CRD IV combined buffer with any Common Equity Tier 1 capital maintained to meet their Total Capital Requirement.
The PRA will write to firms setting out its view of the amount and quality of Pillar 2A capital they should hold based on the ICAAP and the SREP, and include a VREQ application form. If firms agree, the PRA expects that they will apply for the imposition of the requirements set out in the updated Voluntary Requirement – Capital Buffers and Pillar 2A Model Requirements by signing and returning the VREQ application form.
As part of the VREQ application process, from 1 January 2018 firms are expected to also apply for a minor modification of 5.1 to 5.5. of the Capital Buffers Part of the PRA Rulebook. This is to avoid any confusion, given that Pillar 2A is a formal requirement, in the application of Maximum Distributable Amount trigger points under the rules (which do not include a Pillar 2A component) and as set by the VREQ (which do). The updated VREQ application incorporates a link to a pro forma modification by consent direction, and is set out in the above table under ‘Voluntary Requirement - Capital Buffers and Pillar 2’.
Voluntary Requirement – Capital Buffers and Pillar 2A Model Requirements