SoP6/25 – The PRA’s approach to Internal Model Method (IMM) permission under the Counterparty Credit Risk (CRR) Part

First published on 28 October 2025

This statement of policy (SoP) sets out the Prudential Regulation Authority’s (PRA) approach to considering applications from PRA-authorised persons to not apply rules, or to apply them with modifications, under section 138BA of the Financial Services and Markets Act 2000 (FSMA). The SoP relates to rules in the Counterparty Credit Risk (CRR) Part of the PRA Rulebook.

This SoP is relevant to banks, building societies, PRA-designated investment firms and PRA-approved, or PRA-designated, financial or mixed financial holding companies. It is not relevant to credit unions, third-country branches, or small domestic deposit takers (SDDTs) and SDDT consolidation entities.

Future version

Published on 20 January 2026. Effective from 1 January 2027.

• Statement of policy 6/25 – The PRA’s approach to Internal Model Method (IMM) permission under the Counterparty Credit Risk (CRR) Part – January 2026 (pdf)

- following PS3/26 – Restatement of CRR requirements – 2027 implementation – final 

Past version