Prudential Regulation Authority Rulebook

4.

Section 61 of FSMA allows the PRA to approve applications to perform a Senior Management Function (SMF) under section 59 of FSMA:

• subject to any conditions that the PRA considers appropriate; and/or
• for a limited time period; and in either case, only
• where it appears to the PRA that it is desirable to do so in order to advance any of its objectives.

5.

Similarly, sections 63ZA and 63ZB of FSMA allow the PRA to vary approvals to perform SMFs granted under section 59 of FSMA either at the request of a firm or at the PRA’s own initiative, where:

• the PRA gave the approval; or
• the FCA gave the approval and the firm is PRA-authorised; and
• the PRA considers that it is desirable to do so in order to advance any of its objectives. Variations of approval may include the imposition, modification or removal of conditions and/or time limits.

6.

Before exercising its powers under section 63ZB of FSMA, the PRA is required to consult with the FCA if the approval was given by the FCA or last varied by the FCA. Moreover, where the PRA wants a variation of approval made at its own initiative to take place immediately, it must comply with section 63ZC of FSMA, which gives the firm concerned and the individual approved (the ‘Senior Manager’) the right to make representations.