PRA has proposed a new Statement of Policy setting out its approach to the granting of rule permissions under s.138BA of FSMA – a new power for PRA to enable firms not to apply certain rules, or to apply them in a modified way. PRA is expecting to use this power to transfer some assimilated permissions and approvals into its rules.
PRA hopes that, in setting out its approach, there will be clarity and transparency over the criteria it will use to assess applications. In turn, this should reduce unnecessary costs and increase the speed of dealing with applications.
The proposed SoP has three messages:
- PRA will publish subject specific SoPs setting out the criteria it will take into account when assessing specific rule permissions under s138BA of FSMA;
- PRA will consider the criteria set out under s138A in assessing any applications under s138 where it has not set out specific criteria in relation to a s138BA rule permission; and
- PRA will expect applications to be accompanied by detailed information and evidence demonstrating how the relevant criteria are met.
Consultation closes on 30 April. PRA proposes to publish a final SoP in June 2024.