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.
Renewals or extensions
If you wish to renew or extend an existing waiver you will need to submit a new application, detailing again how your request meets the statutory test.
Please submit your application through our Connect portal and allow time for us to review your request.
Applications are not automatically granted. Each application is assessed on its merits. Following our guidelines and suggestions will make sure you present the best possible case. But remember that not all rules can be waived or modified (eg rules derived from European Directives).
If we decide to grant your application, we may attach conditions or requirements, such as extra reporting.
A waiver or modification will not apply retrospectively.