Prudential Regulation Authority Rulebook

7A.1

Where a firm, or another member of its group that is not a firm but is included in the supervision on a consolidated basis of the firm, intends to:

1. (1) issue a capital instrument that it considers will qualify under Part Two of CRR as a Common Equity Tier 1 instrument; or
2. (2) amend or otherwise vary the terms of such an instrument included in its own funds or the own funds of its consolidation group;

the firm shall, at least one month before the intended date of issuance or intended date of amendment or variation, as applicable, notify the PRA of that intention, except that where there are exceptional circumstances which make it impracticable to give such a period of notice, the firm must give as much notice as is reasonably practicable in those circumstances.

7A.2

When notifying PRA under 7A.1 the firm must:

1. (1) complete and submit the form referred to in 7D.3(1) (Pre/Post-Issuance Notification (PIN) Form);
2. (2) provide a copy of the draft terms and conditions of the capital instrument together with any side agreement;
3. (3) provide a properly reasoned draft independent legal opinion from an appropriately qualified individual confirming that the capital instrument qualifies as a Common Equity Tier 1 instrument under Part Two of CRR; and
4. (4) complete and submit the form referred to in 7D.3(2) (CET1 Compliance Template).

7A.3

Where a firm intends to make use of the derogation in the second subparagraph of Article 26(3) of the CRR, 7A.1 shall not apply. The firm must instead send to the PRA at the same time as it sends the notification under point (b) of the second paragraph of Article 26(3):

1. (1) written confirmation that the capital instrument:
1. (a) meets the condition in point (a) of the second subparagraph of Article 26(3) of CRR; and
2. (b) qualifies as a Common Equity Tier 1 instrument under Part Two of CRR;
2. (2) a completed form referred to in 7D.3(1) (Pre/Post-Issuance Notification (PIN) Form); and
3. (3) a copy of the terms and conditions of the instrument together with any side agreement.