Capital Requirements Regulation permissions | Bank of England

What should a CRR permissions application include? · a list of all the entities which require the CRR permission, including any Financial Conduct ... Ouruseofcookies Weusenecessarycookiestomakeoursitework(forexample,tomanageyoursession).We’dalsoliketousesomenon-essentialcookies(includingthird-partycookies)tohelpusimprovethesite.Byclicking‘Acceptrecommendedsettings’onthisbanner,youacceptouruseofoptionalcookies. Necessarycookies Analyticscookies   Yes Yes Acceptrecommendedcookies Yes No Proceedwithnecessarycookiesonly Necessarycookies Necessarycookiesenablecorefunctionalityonourwebsitesuchassecurity,networkmanagement,andaccessibility.Youmaydisablethesebychangingyourbrowsersettings,butthismayaffecthowthewebsitefunctions. Analyticscookies Weuseanalyticscookiessowecankeeptrackofthenumberofvisitorstovariouspartsofthesiteandunderstandhowourwebsiteisused.FormoreinformationonhowthesecookiesworkpleaseseeourCookiepolicy. Skiptomaincontent Home Prudentialregulation Authorisations CapitalRequirementsRegulationpermissions CapitalRequirementsRegulationpermissions Firmscanapplytoustovarytherequirementsfortheamountofcapitaltheymusthold,whichissetoutintheCapitalRequirementsRegulation Subjecttoanytransitionalrelief,formsandtemplatesapplicablebefore11pmThursday31December2020shouldbereadinconjunctionwithSupervisoryStatement(SS)2/19,whichsetsouthowthePRAexpectsfirmstointerpretEU-basedreferencesinreportinganddisclosurerequirementsandregulatorytransactionsformsaftertheUK’swithdrawalfromtheEUandtheendofthetransitionperiod. Inthissection Cancellingafirm'spermissions Changeincontrol FinancialServicesCompensationScheme Intra-groupfinancialsupport Newfirmauthorisation Gibraltarpassportingarrangements SeniorManagersRegime:approvals SolvencyIIapprovals Structuralreformapprovals Variationofpermission Waiversandmodificationsofrules WhichfirmsdoesthePRAregulate? Wehavethepowertoexercisevariousdiscretionsonfirms’capitalrequirements,whichareavailabletousundertheCapitalRequirementsRegulations(CRR).Weassessapplicationsonacase-by-casebasisagainsttherelevantCRRarticleorreferenceand,whereapplicable,PRArulesandsupervisorystatements.Wewillalsotakeintoaccountourstatutorydutytopromotethesafetyandsoundnessoffirms. Dualregulatedfirms(firmsregulatedbyboththePRAandtheFCA)mustapplytothePRAforcapitalrequirementspermissions.ApplicationfeesareonlyrequiredforpermissionsfornewCRRmodels.Thesearesetoutinthe FeesPartofthePRARulebook. Firmsshouldsubmittheirapplicationingoodtime,andwewilltrytomeetrequesttorespondbyaparticulardate.However,thismaynotbepossibleifanapplicationraisescomplexissues.Weacknowledgeallapplicationsthatwereceive. WhatshouldaCRRpermissionsapplicationinclude? WefindithelpfulforfirmstoprovidethefollowinginformationaspartofanapplicationforaCRRpermission: alistofalltheentitieswhichrequiretheCRRpermission,includinganyFinancialConductAuthority(FCA)solo-regulatedfirms detailsoftheCRRarticleunderwhichtheapplicationisbeingmade detailedinformationabouttherationalefortheCRRpermission,including,forexample,whetheritispartofawidergrouptransaction/restructure detailedresponseswithrespecttotheCRRarticleconditionsandrelevantRegulatoryTechnicalStandards(RTS)orImplementingTechnicalStandards(ITS) confirmationthatthefirmiscontentforthewaiver/modificationtobepublishedontheFinancialServicesRegisterifapprovedand,ifnot,anexplanationofwhyitwouldbeinappropriatetodoso,addressingtherequirementssetoutinHMTRegulation43  importanttimelines. Applicationformsandnotes CRRpermission:generalapplicationform Sendyourcompletedapplicationform,togetherwithanysupportingdocumentationrequired,[email protected]. Alternatively,hardcopiescanbesenttoATLAS,PRAAuthorisations,PrudentialRegulationAuthority,20Moorgate,LondonEC2R6DA. FirmsarenotrequiredtoprovidedetailsofaprecedentwrittennoticewhenapplyingforaCRRPermission. WehavesetouttheformatandcontentofthesupportingdocumentationweexpecttoreceiveforcertaintypesofCRRpermissionsapplicationinthedocumentsbelow: IntragroupexposuresapplicationsJuly2018(PDF0.2MB) IndividualconsolidationunderCRRArticle9(PDF0.1MB) DeltaCalculation,applicationsofstandardisedapproach:CRRArticles329,352(1)and358(PDF0.3MB) Inclusionofinterimoryear-endprofitsinCommonEquityTier1capitalunderArticle26(2)(PDF0.2MB) Liquiditysub-groupsunderCRRArticle8(PDF0.1MB) Interestrateonderivativeinstruments:CRRArticle331(PDF0.2MB) Calculationoftheoverallnetforeignexchangeposition:CRRArticle352(2)(PDF0.2MB) InternalratingsbasedapproachCRRpermissionapplicationpack(PDF0.6MB) Ownestimatesforvolatilityadjustments:CRRArticle225(PDF0.2MB) Supplementaryapplicationform:CRRArticle77/78(PDF0.5MB) WhenmakinganArt26(3)application,firmsarerequiredtosubmitapre-issuancenotification(PIN)formaspartoftheapplication.ThePINformcanbefoundontheCapitalinstruments–pre/post-issuancenotification(PIN)page.    Modelchangenotifications WhereCRRpermissionshavebeengrantedfortheinternalratingsbased(IRB)approach,theinternalmodelmethod(IMM)ortheinternalmodelapproach(IMA),weexpectfirmsnotifyingusofchangestosuchapproachestocompletethefollowingpro-forma: Pro-formaforthenotificationofchangestoIRB,IMMandIMApermissionsundertheCRR Pleasesendthecompletedpro-forma,togetherwithanyrequiredsupportingdocumentationtoCRRModelPermissions@bankofengland.co.uk.  Pleasecopyinyoursupervisorycontactwhensubmittingthepro-forma,includingthefirm’sFRNinthesubject. Whathappensonceadecisionisreached? IfwedecidetograntaCRRpermission,wewillissueanapprovalletterandawrittennoticesettingoutthepermission,whichentitiesitappliestoandthetimeperiodforwhichitisvalid. Insomecases,theapprovalofaCRRpermissionmaymeanweneedtoimposeorvaryafirm’srequirementsundersection55MoftheFinancialServicesandMarketsAct(FSMA).WewillconsulttheFCAbeforewedothis.Theserequirementswillbesetoutinthewrittennotice.  PublishedCRRpermissions WehaveastatutorydutytopublishdetailsofCRRpermissionsweapprove,unlessweconsideritinappropriateorunnecessarytodoso. ThemajorityofCRRpermissionsarepublishedinfull.Certainpermissionsarepublishedinabridgedformattheaffectedfirm’srequest.  WewillalsoupdatetheFinancialServicesRegisterwiththefirm’swrittennoticeofbeinggrantedtheCRRpermission. 19April2021:TheconsolidatedlistofWaivers,CRRandSolvencyIIPermissionsgrantedbyustoPRA-authorisedfirmsisnolongerbeingprovided.Ifyouwishtodiscussyourrequirementsforthisreportpleasecontactthefollowingaddress:[email protected],pleaseseetheFCARegisterwhichistheprimarysourceofPRAWaiversandEUPermissionsdataandisavailableforexternalparties.FirmsarenotrequiredtoprovidedetailsofaprecedentdirectionorwrittennoticewhenapplyingforawaiverormodificationofPRArules,aCRR,orSolvencyIIPermission. Privacynotice Howweuseyourinformation Informationwecollect Throughourauthorisationsforms,theBankofEngland(the‘Bank’)collectspersonaldataaboutyou.Thispersonaldatacouldinclude(dependingontheapplicationornotificationformsubmitted)personalidentificationdetails,contactinformation,addresses,employmenthistoryandinformationrelatingtofitnessandproprietysuchascriminal,civilandregulatorymatters.Eachformclearlystateswhatpersonaldataisbeinggathered.TheBankmaymakefurtherenquiriesandseeksimilarinformationfromthirdpartiesandotherdatasourcesaswethinkappropriatetoidentifyandverifyinformationthatweconsiderrelevanttotheapplicationornotification,thiscouldincludecriminal,creditandotherbackgroundchecks.                                                 Whyweneedyourpersonaldata TheBankcollectspersonaldatatoprocessarangeofauthorisationapplicationsandnotifications,whichinclude: Newfirmauthorisations SeniorManagementFunctions WaiversandModificationsofrules VariationsandcancellingofPermissions ChangeinControl StandingData Passporting ThisinformationisusedtoassisttheBankofEnglandindischargingitsfunctions,inparticularthestatutoryfunctionsofthePrudentialRegulationAuthorityundertheFinancialServicesandMarketsAct2000andotherrelevantlegislation. Whatwedowithyourpersonaldata Incomplyingwithapplicablelawsandforlawenforcementpurposes,wemaydiscloseinformationtoanygovernmententity,regulatoryauthorityortoanyotherpersontheBankreasonablyconsidersnecessary.ThismaymeanthatpersonaldataistransferredoutsidetheUnitedKingdom.Otherwise,wewillnotdiscloseyourinformationwithoutyourpermission.YourpersonaldatawillberetainedinaccordancewiththeBank’srecordsmanagementschedule.  Yourrights Youhaveanumberofrightsunderdataprotectionlaws. Forexample,youhavetherighttoaskusforacopyofthepersonaldatatheBankholdsaboutyou.Youcanalsoaskustochangehowweprocessordealwithyourpersonaldata,andyoumayhavetherightinsomecircumstancestohaveyourpersonaldataamendedordeleted.Tocontactusaboutthoserights,includingmakingarequestforthepersonaldataweholdaboutyou,ortofindoutmoreaboutprivacyanddataprotectionattheBank,pleaseseethePrivacyandtheBankofEngland page. Backtotop Thispagewaslastupdated07June2021 Giveyourfeedback Wasthispageuseful? 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