Waivers, modifications and rule permissions

The Prudential Regulation Authority has the power to waive or modify rules made under the Financial Services and Markets Act 2000 (FSMA).

In this section

What are waivers, modifications and rule permissions?

This table outlines the different types of applications available to firms under the Financial Services and Markets Act 2000 and the Capital Requirements Regulation 2013.

Application type: Waiver or modification  Rule permission  CRR permission 
Power:  Section 138A of FSMA  Section 138BA of FSMA  The Capital Requirements Regulations 2013 (CRR Regs 2013); Section 144G or Section 192XC of FSMA 
Coverage  All PRA rules1  All PRA Rules, with defined rule permissions indicated in the Rulebook.1  Specified in CRR Rules – covers capital requirements, liquidity, leverage, large exposures etc. 
Description  Under section 138A FSMA we can grant a waiver or modification on application or with the consent of a person who is subject to the rules if we consider statutory tests in s138A of FSMA to be met. 

A 'waiver' of a rule means that the applicant does not have to comply with that rule. 

A 'modification' to a rule enables the applicant to comply with an amended rule that better fits their own circumstances. 

Under section 138BA FSMA we can grant a person subject to PRA rules permission to disapply (waive) or modify a rule. 

We use this power to set up specific concessions or alternative prudential treatments with defined criteria and conditions. 

These are indicated in the relevant rules and the criteria and conditions set out in PRA policy material such as Statements of Policy.

A specific type of rule permission is a ‘CRR Permission’. This allows PRA authorised banking firms and PRA approved or designated bank holding companies to apply for permission to use specific concessions and alternative prudential treatments.

These Permissions, along with any relevant criteria or conditions, will be set out in specific “CRR Rules”.
1 FSMA 2000 section 138A(1) and section 138BA(1)-(2) does not apply to rules made by either regulator under section 64A (rules of conduct) or section 1370 (threshold condition code).

Application submission

Before proceeding, please ensure you have considered all the guidance provided on this page. Dual-regulated firms applying for a waiver/modification or rule permission should choose the sector that best describes the organisation. You will then be directed to the relevant application type and associated forms.

All application forms and any supporting documentation must be sent to PRA-Waivers@bankofengland.co.uk.

Choose a sector to make an application:

Banking

Applications for CRR Firms and approved bank holding companies, SDDT Firms and Credit Unions to waive or modify PRA Rules under s138A or apply for CRR Permission under s144G/S192XC , or apply for a rule permission under s138BA if available.

Insurance

Applications for UK Solvency II firms, UK small insurers, ISPVs, Lloyds Managing Agents and Friendly Societies to waive or modify PRA Rules under s138A or apply for a rule permission under s138BA where available.

  • Firms should provide the following information as part of an application for a waiver/modification or rule permission:

    • Details of the PRA rules or CRR articles under which the application is made. 
    • A list of all the entities in the PRA-regulated group that require the waiver, modification or rule permission, noting where applicable any solo-regulated and unregulated entities covered by it.  
    • Details of any linked waivers or modifications to FCA rules that are required.
    • Details of any direction or written notice the firm is seeking to renew and where appropriate any precedent direction or written notice.
    • A clear explanation of the rationale for the waiver, modification or rule permission.
    • Completed criteria and condition form and any other application-specific information requests that may be set out in rules or policy documents.
    • Confirmation that the firm is content for the waiver, modification or rule permission to be published on the Financial Services Register. Where the firm does not consent, it must provide a clear explanation of why publication would be inappropriate, addressing the requirements set out in the relevant provision ( for example under Regulation 43 of the Capital Requirements Regulations 2013, section 138B FSMA or Reg 6 of the FSMA (Disapplication or Modification of Financial Regulator Rules in Individual Cases) Regulations 2024).
    • Any important timelines the PRA should be aware of.
    • Confirmation that the application submission has been approved by relevant accountable executives.

  • We do not automatically grant applications for waivers, modifications and rule permissions.

    Before granting a s138A waiver or modification we assess each application against the statutory tests in s138A(4).

    Section 138A(4) of FSMA sets out the statutory tests which must be met:

    (a) compliance with the rules would be unduly burdensome or would not achieve their intended purpose and 

    (b) modifying or waiving the rule would not adversely affect any of the PRA’s objectives.

    Before granting a s138BA rule permission we will take account of any criteria and conditions that we have set out in subject-specific Statements of Policy (SoP). 

    For rules where we have not set out permission-specific criteria we will generally expect to consider, and place significant weight upon, the statutory tests set out under s138A FSMA.

    We have published a statement of policy (SoP) - The Prudential Regulation Authority’s approach to rule permissions and waivers which details our intended use of the s138BA power.

    Criteria and conditions for CRR Permissions are set out in CRR rules and may be further explained in subject-specific SoP or Supervisory Statements (SS).

  • A dual-regulated firm seeking a waiver or modification of a Financial Conduct Authority (FCA) rule should apply directly to the FCA. When it is not immediately clear whether a rule is PRA or FCA designated, firms should ask their supervisory contact to clarify. We can only waive or modify rules that are made by the PRA. These rules are available in the PRA Rulebook. 

  • Details of current waivers, modifications and rule permissions approved by the PRA are available on the FCA Register record for each firm or holding company and on the consolidated list linked in the Publication section below.

  • If you are considering an application for a section 138BA rule permission where the PRA has set out specific criteria, the application form and any relevant supplementary forms can be found on either the Banking Waivers, Modifications, Rule Permissions and Notifications or the Insurance Waivers, Modifications, Rule Permissions and Notifications webpages as appropriate.

    If you are considering an application for a section 138BA rule permission to waive or modify a PRA rule, where the PRA has not set out assessment criteria for a specific permission you are encouraged to apply for the modification or waiver under s138A FSMA using the waiver/modification application form.

    If, after considering the content of our policy statement (PS) 12/24 – The Prudential Regulation Authority’s approach to rule permissions and waivers and SoP – The Prudential Regulation Authority’s approach to rule permissions and waivers, you still wish to apply under s138BA where the PRA has not set out permission specific assessment criteria, please submit a completed section 138BA rule permission application form along with a completed supplementary information form. Please send them to PRA-Waivers@bankofengland.co.uk.

  • We may offer a general waiver to firms. These are referred to as ‘Modification or Waiver by consent’ and can be set up under section 138A or 138BA of the Financial Services and Markets Act 2000 (FSMA).

    A modification/waiver by consent may be offered in exceptional circumstances where we consider that a modification/waiver should apply to a number of firms, for example where an unmodified rule may not meet the circumstances of a particular category of firm. In these cases we will inform the firms concerned that the waiver is available, either by contacting them individually or by publishing details of the availability of the waiver on our Banking Waivers, Modifications, Rule Permissions and Notifications and Insurance Waivers, Modifications, Rule Permissions and Notifications webpages.

    To take advantage of any of the Modifications by Consent, a firm must email PRA-Waivers@bankofengland.co.uk, stating its agreement to comply with any conditions included within the Modification Direction.

Assessment

We will acknowledge receipt of all applications.

During our assessment we may ask for further information. 

There are no statutory deadlines for assessing applications. Firms should apply in good time, and we will endeavour to meet a firm’s request to receive a response by a particular date. However, if an application raises complex issues this may not be possible.

We will consult with the FCA before we make a decision if the waiver/modification or rule permission involves groups containing FCA solo-regulated firms or may have a material impact on the FCA’s objectives.

You have the right to withdraw an application at any point before the PRA has made a decision on the application.

Decision

If we decide to grant the waiver, modification or rule permission we will issue an approval email and a Direction or Written Notice setting out: 

  • how the rule has been waived/modified or which permission the firm has received, 
  • to which entities the Direction or Written Notice is applicable 
  • the time period for which the Direction or Written Notice is valid
  • any relevant conditions, for example new reporting requirements.

A waiver, modification or rule permission will not apply retrospectively.

If we decide not to approve an application, we will notify you of our decision and explain the reasons for it. For waivers and modifications under section 138A FSMA, there is no right to refer the matter to the Upper Tribunal. For rule permissions under section 138BA FSMA and CRR permissions, you may have the right to refer the matter to the Upper Tribunal. We will explain any applicable review or appeal rights, including relevant time limits, when we notify you of our decision. 

Renewal and revocation

The waiver/modification or rule permission will usually be granted for a specific duration, after which it will cease to apply. A firm can then apply for a new waiver/modification or rule permission by submitting a new application. 

Some waivers/modifications or rule permissions that result in situations such as the firm being able to use a different calculation method, e.g. an internal model, or be subject to an alternative prudential regime may apply indefinitely as long as the criteria and conditions continue to be met.

We may revoke a waiver/modification or rule permission at any time. In deciding whether to revoke a waiver/modification or rule permission, we will consider whether the relevant criteria and conditions are no longer satisfied and whether the waiver/modification or rule permission is otherwise no longer appropriate.

Failure to comply with a rule as modified, or with any condition which is attached to a waiver/modification or rule permission, may incur enforcement action by the PRA and (if applicable) a right of action under S138D of FSMA (Actions for damages).

Publication

We have a statutory duty to publish the details of waivers, modifications and rule permissions we approve, unless we consider it inappropriate or unnecessary to do so. 

The majority of waivers, modifications and rule permissions are published in full, with some published in abridged form to protect the commercial interests of the firm concerned.

Where a firm has good grounds for non-publication, abridged publication, or delayed publication, they must set out clear and substantive reasons and refer to the relevant statutory provision (for example under Regulation 43 of the Capital Requirements Regulations 2013, section 138B FSMA or Reg 6 of the FSMA (Disapplication or Modification of Financial Regulator Rules in Individual Cases) Regulations 2024). A firm can make representations to us if it objects to publication. If we decide to publish a waiver/modification or rule permission against the wishes of a firm, we will give the firm an opportunity to withdraw the application before the waiver is granted.

The decision to withhold a waiver/modification, rule permission or the identity of a firm from publication will usually only last for the duration of the relevant grounds for non-publication. If we decide to publish a waiver/modification or rule permission which has previously been withheld, we will first give the firm an opportunity to make representations.

We will update the Financial Services Register with the firm's Direction or Written Notice detailing the waiver/modification or rule permission.

The consolidated list of Waivers, CRR and Solvency II Permissions, and s.138BA Rule Permissions granted by us to PRA-regulated firms and to PRA-approved bank holding companies is now available to review. The information in these reports is valid with effect from the first of the month.

If you wish to discuss the content of these reports, please email PRA-Waivers@bankofengland.co.uk. Alternatively, please see the FCA Register which is the primary source of PRA Waivers, Permissions, and Rule Permissions data.

Frequently asked questions

  • The Application Reference Number (D10000XXXX) is generated when you submit an application by email. It appears as the subject line of the acknowledgement email you receive, confirming that your application has been logged. Firms should include the Application Reference Number when emailing the PRA about their application. 

    The Transaction ID (FEP00000XXXX) is generated when you submit an application by the Firm Engagement Portal.

    The Direction or Notice Reference Number (format: 000xxxx or A000xxxxP) is issued once your waiver/modification or rule permission has been formally approved. This number appears on the Direction or Written Notice we send to you. 

    You can check for published Directions and Written Notices on Financial Services Register, Bank Holding Companies or the consolidated list linked in the Publication section above.

  • Within the PRA, Authorisations is responsible for publishing and maintaining Written Notices and Directions on the Financial Services Register. These duties do not sit with your firm’s supervisory contact. All queries relating to the publication of permissions and waivers should be directed to PRA-Waivers@bankofengland.co.uk.

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This page was last updated 25 August 2026