Application timings
Holding companies established on or before Tuesday 29 December 2020
We encourage a company established in the UK as a parent financial holding company or a parent mixed financial holding company, on or before Tuesday 29 December 2020, to submit its application for approval, or exemption, in June 2021. The latest date by which a parent financial holding company or a parent mixed financial holding company benefitting from HM Treasury transitional provisions must submit an application is Monday 28 June 2021.
Holding companies established after Tuesday 29 December 2020
A parent financial holding company or a parent mixed financial holding company that was established after Tuesday 29 December 2020 must secure our prior approval, or a prior exemption, from the requirement to seek approval. Applications we receive will be assessed and determined within the statutory timelines prescribed by Part 12B FSMA. For more information, firms should contact PRA-FHC-approval-enquiries@bankofengland.co.uk.
Consolidated Pillar 2A and Buffers
Upon approval of a parent financial holding company or a parent mixed financial holding company, we will impose consolidated Pillar 2A, and where applicable, G-SII buffer requirements using the s192c FSMA powers.
For groups whose PRA-authorised bank or designated investment firm subsidiaries have had consolidated Pillar 2A or G-SII buffer requirement imposed under s55 of FSMA, the consolidated requirements imposed on the approved parent financial holding company or parent mixed financial holding company will be the same as the consolidated Pillar 2A capital and G-SII buffer requirement currently applicable to the PRA authorised bank or designated investment firm subsidiary. The consolidated requirements currently applicable to the PRA-authorised bank or designated investment firm subsidiary will automatically cease to apply upon approval of the parent financial holding company or a parent mixed financial holding company.
Similarly where we have set expectations regarding the consolidated PRA buffer and/or liquidity buffers, we will communicate our expectation in respect of the consolidated PRA buffer and liquidity buffer to the parent financial holding company or a parent mixed financial holding company. These expectations will be the same as the consolidated PRA buffer and/or liquidity buffer currently applicable to the PRA-authorised bank or designated investment firm subsidiary.
Capital buffers and Pillar 2A modification by consent (MBC)
To ensure the capital stack operates as intended, we have made available a modification to the Capital Buffer rules, which mirrors the existing modification applicable to the PRA authorised firm subsidiary.
A copy of the template modification direction is available below. Parent financial holding companies and parent mixed financial holding companies will be asked to consent to the rule modification by email prior to their approval.
