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

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

Discretion to remove firms meeting the SDDT criteria from the SDDT regime

2.3 The PRA will consider removing a firm from the SDDT regime 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 SDDT regime but are adequately addressed by the prudential rules that apply to other firms.