Alignment with the SDDT regime

8.17 In CP16/22, the PRA proposed that a firm that meets the SDDT criteria but does not consent to the modification for joining the ICR would have to implement the Basel 3.1 standards on 1 January 2025. The implementation date for the Basel 3.1 standards has since been moved to 1 July 2025.

8.18 A firm must meet the SDDT criteria to be eligible for the ICR (and the SDDT consolidation criteria must be satisfied for a CRR consolidation entity to be eligible for the ICR). The criteria for becoming an SDDT and ICR firm are aligned because the ICR is meant to benefit firms preparing to be subject to the SDDT capital regime or considering that option. As a result, the minor drafting changes to the eligibility criteria for the SDDT regime that have been made to the final rules published with PS15/23 will also be relevant to eligibility for the ICR.

8.19 Furthermore, consistent with the approach being taken to SDDT consolidation entities, the near-final ICR rules and statement of policy have been amended to set out that a CRR consolidation entity can become an ICR consolidation entity by way of a modification by consent provided that the SDDT consolidation criteria are satisfied.

Removal of the reference date