On 25 July 2024, the Prudential Regulation Authority (PRA) published Policy Statement PS12/24 on its approach to rule permissions and waivers. In PS12/24, the PRA sets out its final statement of policy (SoP) on the topic, along with feedback to Consultation Paper CP3/24.
The PRA explained in CP3/24, published on 31 January 2024, that its aim in setting out its approach in a SoP is to help improve clarity and transparency over the criteria the PRA will use to assess applications under s138BA of the Financial Services and Markets Act 2000. This has an overarching objective of lowering costs and increasing the speed of s138BA rule permissions.
Following the responses it received to CP3/24, the PRA has made two amendments to the draft SoP, to clarify:
- What the PRA generally expects to include in a subject specific SoP.
- That there may be exceptional circumstances where it may be appropriate to grant a s138BA permission for which it has not set out a criteria despite the s138A statutory tests not being met.
The SoP has effect from the date of publication of PS12/24.