3.1 This chapter sets out the PRA's approach to firms and CRR consolidation entities that wish to access the SDDT regime, but do not meet SDDT criteria or SDDT consolidation criteria. Such firms and consolidation entities may still be able to be treated in the same way as those meeting the criteria. 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.

Firms that are members of foreign groups

3.2 A firm that has a parent based outside the UK, including a firm that has a holding company based outside the UK, (a member of a 'foreign group') cannot meet all the SDDT criteria; in particular the criterion specifying that 'any parent undertaking of the firm is a UK undertaking' [PRA Rulebook, SDDT Regime - General Application, 2.1(9).].

3.3 The PRA considers that it may be appropriate for a firm that is a member of a foreign group but that satisfies each of the other conditions in the SDDT criteria to be treated in the same way as a firm that satisfies all the SDDT criteria. Whether this is the case will depend in particular on the total size of the foreign group the firm is a member of. The PRA considers that this is likely to be the case where the firm can demonstrate that the group's total assets do not exceed £20 billion when calculated on the following basis: