2.79 CP5/22 proposed that standalone firms that are not part of a UK consolidation group would apply the scope criteria on a solo basis. Where a firm is part of a larger group, the PRA proposed that the scope criteria should be assessed at the highest level of the UK consolidation group, and would meet the definition if it, the UK consolidation group of which it is part and all the banks and building societies within the UK consolidation group meet the scope criteria. For UK subsidiaries of foreign-headquartered banking groups or foreign holding companies, CP5/22 suggested that a firm meeting the criteria on a solo basis would be able to apply for a waiver or modification to participate in the SDDT regime, and the PRA would consider whether the size and activities of the group at a global level are consistent with the SDDT criteria.

2.80 In response to CP5/22, two respondents supported the level of application of the scope criteria proposed in CP5/22, with one other respondent supporting the proposal that the scope criteria should be met at a group level.

2.81 Two respondents supported the proposal that firms that are UK subsidiaries of foreign groups or holding companies will be able to be captured within the SDDT regime. One respondent supported the proposal that a waiver process would be used for UK subsidiaries with a foreign parent to access the regime.