2.1 The PRA is prepared to offer a firm that meets the SDDT criteria a modification of the definition of an 'ICR firm' by which the firm would become an ICR firm. Similarly, the PRA is prepared to offer a CRR consolidation entity that meets the SDDT consolidation criteria a modification of the definition of an 'ICR consolidation entity' by which it would become an ICR consolidation entity.

2.2 Where a firm is a member of a consolidation group, those modifications are offered on condition that all firms in the consolidation group and the CRR consolidation entity are willing and able to consent to a similar modification at the same time.

Discretion to remove firms meeting the SDDT criteria from the Interim Capital Regime

2.3 The PRA will consider removing a firm from the ICR by revoking its modification direction if, in the PRA's consideration, the firm's inclusion in the regime does not advance the PRA's statutory objectives.

2.4 This situation is likely to arise if a firm is carrying out business activities that create risks to the firm's safety and soundness that are not adequately addressed by the ICR but are adequately addressed by the prudential rules that apply to other firms.

2.5 The PRA may in particular consider revoking a firm's modification direction in the case of a merger or acquisition, or similar circumstances, if the ICR is no longer appropriate for the firm even though it continues to meet the SDDT criteria due to the criteria's use of measures based on historical data (eg a three-year average of total assets to calculate the size measure).