First published in December 2017
This page is relevant to firms invited to apply for a voluntary requirement (VREQ) under section 55M of the Financial Services and Market Act (2000) in relation to a Pillar 2A requirement, a G-SII buffer or an O-SII buffer.
As part of the VREQ application process, from 1 January 2018 firms are expected to also apply for a modification of 5.1 to 5.3 of the Capital Buffers Part of the PRA Rulebook. The purpose of the modification is to avoid any potential conflict between the individual requirements (of Maximum Distributable Amount trigger points) imposed on a firm and PRA rules.
The modifications below are given by us under section 138A of the Financial Services and Markets Act 2000 (FSMA). The modifications should be read and used in conjunction with the Voluntary Requirement – Capital Buffers and Pillar 2A Model Requirements as outlined below.
The modifications apply where a Pillar 2A requirement, a G-SII buffer or an O-SII buffer has been imposed on the firm on an individual, sub-consolidated or consolidated basis.