Prudential Regulation Authority Rulebook

1.

The application referred to in Article 29 shall be accompanied by the following information:

1. (a) a well-founded explanation of the rationale for performing any of the actions referred to in Article 77(1) of the CRR;
2. (b) whether the permission sought is based on point (a) or (b) of the first subparagraph of Article 78(1) of the CRR or whether it is a general prior permission pursuant to the second subparagraph of Article 78(1) of the CRR;
3. (c) where the institution seeks to call, redeem or repurchase Additional Tier 1 or Tier 2 instruments or related share premium accounts during the five years following their date of issuance pursuant to Article 78(4) of the CRR, how the conditions of that article are met;
4. (d) present and forward-looking information, that shall cover at least a three year period, on the amounts and percentages corresponding to the following requirements for own funds and eligible liabilities, including the level and composition of own funds before and after the performing of the action and the impact on regulatory requirements:
1. (i) the Common Equity Tier 1 capital requirement laid down in point (a) of Article 92(1) of the CRR, the Tier 1 capital requirement laid down in Article 92(1)(b) of the CRR, and the own funds requirement laid down in point (c) of Article 92(1) of the CRR;
2. (ii) the additional Common Equity Tier 1 capital, the additional Tier 1 capital, and the additional own funds that the institution is required to hold by the PRA pursuant to Regulation 34 of the Capital Requirements Regulations, where applicable;
3. (iii) the combined buffer requirement referred to in regulation 2(1) of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014;
4. (iv) the minimum leverage ratio requirement laid down in Chapter 3 of the Leverage Ratio – Capital Requirements and Buffers Part of the PRA Rulebook, where applicable;
5. (v) the countercyclical leverage ratio buffer laid down in Chapter 4 of the Leverage Ratio – Capital Requirements and Buffers Part of the PRA Rulebook, where applicable;
6. (vi) any additional leverage ratio buffer requirements implemented under sections 55M and 192C of FSMA, where applicable;
7. (vii) the risk-based requirement for own funds and eligible liabilities under point (a) of Articles 92a(1), or Article 92b of the CRR, where applicable, as well as the non-risk based requirement for own funds and eligible liabilities under point (b) Articles 92a(1), or Article 92b of the CRR, where applicable;
8. (viii) the minimum requirement for own funds and eligible liabilities that the institution is required to hold by the Bank of England pursuant to directions made under sub-sections 3A(4) and (4B) of the Banking Act 2009, as applicable, calculated as the amount of own funds and eligible liabilities, and expressed as percentages of:
1. (1) the total risk exposure amount of the institution, calculated in accordance with Article 92(3) of the CRR; and
2. (2) the amount of own funds and eligible liabilities expressed as percentages of the total exposure measure of the relevant entity;
5. (e) present and forward-looking information on the level and composition of own funds and the level and composition of own funds and eligible liabilities held to ensure compliance, respectively, with the requirements referred to in point (d)(i) to (viii) above before and after performing any of the actions listed in Article 77(1) of the CRR. The information shall cover at least a three year period;
6. (f) the institution’s summary assessment on the impact of the action that the institution has planned to take in accordance with Article 77(1) of the CRR, and any such action that the institution additionally envisages to undertake within a three year period, on compliance with the requirements referred to in point (d)(i) to (viii) above;
7. (g) where the institution seeks to replace own funds instruments or the related share premium accounts pursuant to point (a) of Article 78(1) or point (d) of Article 78(4) of the CRR:
1. (i) information on the residual maturity of the replaced own funds instruments, if any, and the maturity of the own funds instruments replacing them;
2. (ii) the ranking in insolvency hierarchy of the replaced own funds instruments and of the own funds instruments replacing them;
3. (iii) the cost of the own funds instruments replacing the instruments or the shared premium accounts referred to in Article 77(1) of the CRR;
4. (iv) the planned timing of the issuance of the own funds instruments replacing the instruments or share premium accounts referred to in Article 77(1) of the CRR;
5. (v) the impact on the profitability of the institution of a replacement of a capital instrument as specified in pursuant to point (a) of Article 78(1) or point (d) of Article 78(4) of the CRR;
8. (h) an evaluation of the risks to which the institution is or might be exposed and whether the level of own funds and eligible liabilities ensures an appropriate coverage of such risks, including outcomes of stress tests on main risks evidencing potential losses;
9. (i) coverage in terms of own funds of the level and composition of any additional own funds that the institution is expected to hold by the PRA, in excess of the requirements set out in point (d)(i) to (viii) above, before and after performing any of the actions listed in Article 77(1) of the CRR, covering a three year period;
10. (j) any other information considered necessary by the PRA for evaluating the appropriateness of granting a permission in accordance with Article 78 of the CRR.

2.

An institution is not required to submit the information listed in paragraph 1 where the PRA already has the information.

3.

[Note: Provision left blank]

[Note: This rule corresponds to Article 30(2) of Part 2 of Regulation (EU) No 241/2014 as it applied immediately before revocation by the PRA.]