On 9 December 2021, the PRA updated its webpage on waivers and modifications of rules. The update relates to modification by consent for the treatment of assets representing claims on EEA central governments.

The update explains that the PRA has decided to offer a modification by consent (MBC) in respect of certain rules in the Liquidity Coverage Ratio (LCR) part of the PRA Rulebook. The MBC allows any Capital Requirements Regulation (CRR) firm or CRR consolidation entity to continue treating certain EEA government assets as Level 1 High Quality Liquid Assets for the purpose of the LCR and Net Stable Funding Ratio (NSFR). A copy of the template modification direction is available on the updated webpage.

Firms are invited to apply for the rule modification by email to the PRA. The PRA will confirm in writing whether the request has been granted and will publish the approved modification direction on the Financial Services Register.

Modifications will take effect on or after 1 January 2022, and remain in place until the modification is revoked, varied or superseded or the relevant rules are revoked or no longer apply to the firm.