4.1 This chapter sets out the approach for firms and CRR consolidation entities transitioning out of the ICR.

4.2 If an ICR firm or an ICR consolidation entity ceases to meet the SDDT criteria or SDDT consolidation criteria, it must notify the PRA. The remainder of the chapter refers only to firms and the SDDT criteria. Those references should be read, with any necessary modifications, as applying also to CRR consolidation entities and the SDDT consolidation criteria.

4.3 The firm should expect that the PRA will then decide to revoke its modification direction so that it stops being subject to the ICR and becomes subject to Basel 3.1 standards [If these circumstances arise before the ICR and the PRA's Basel 3.1 standards have come into effect then the firm would not become subject to the ICR.]. In many cases, such a firm will be able to prepare for ceasing to meet the SDDT criteria, and should therefore be able to comply with the PRA's Basel 3.1 standards almost immediately. In some circumstances, a firm might reasonably need some further time to prepare for complying with the PRA's Basel 3.1 standards. The PRA will consider this when deciding when to revoke the firm's modification direction. The PRA would also consider the time that it might reasonably need to adjust and/or rebase the firm's Pillar 2 requirements to reflect the implementation of Basel 3.1 standards.