UK Finance has responded to the PRA’s consultation CP 2/22. Clink the link below to read more.

We welcomed the proposal in the CP that firms could apply for a general prior permission (GPP) to allow them to reduce any form of own funds up to a specific amount, in a series of transactions over a period of up to 12 months. But we disagreed with the PRA’s proposal the amount to covered by the GPP should be deducted at the time it is granted. As once approval a GPP is granted, the decision to buy-back or call own funds instruments  remains at  the sole discretion of the issuing firm and will invariably be taken on a case-by-case basis nearer the time of execution we  instead suggested that, the deduction should take place only once the transaction had been announced publicly, in the case of Core Equity Tier 1, or for other categories of capital, once the transaction has taken place. We noted that this would align the UK rules on capital reduction with international requirements, rather than the super-equivalent EU requirements, which previously applied.