Waivers and modifications

Firms can apply for waivers and modifications to vary Handbook rules and alter their compliance obligations.

Waivers and modifications are variations to Handbook rules. A ‘waiver’ means you do not have to comply with a rule. A ‘modification’ allows you to comply with a rule amended to fit your circumstances.

Ordinarily, we individually assess all applications to waive or modify Handbook rules.

In exceptional circumstances, we take the decision to make a modification available to a selection of firms − these are known as ‘modifications by consent’.

Power to grant waivers

We have the power to grant waivers and modifications under section 138A of the Financial Services and Markets Act 2000 (FSMA).

We also have the power to exercise the national discretions under the Capital Requirements Regulation (referred to as ‘CRR Permission’).

The Prudential Regulation Authority (PRA) also grants waivers and modifications under FSMA. Check the PRA Handbook and our Handbook if you are unclear about which authority to apply to for your waiver or modification.