Section 35B

For the purposes of a SREP, an internal model review, and in order to address a situation where an institution does not meet the requirements of the Capital Requirements Regulation , CRR rules or Directive 2013/36/EU UK law, or where the competent authority has evidence that an institution is likely to breach such requirements within the following twelve months, the competent authority may at least— require the reinforcement of the arrangements, processes, mechanisms and strategies implemented in accordance with Directive 2013/36/EU UK law which implemented Articles 73 and 74; require institutions to present a plan to restore compliance with supervisory requirements and set a deadline for its implementation, including improvements to that plan regarding scope and deadline; require institutions to apply a specific provisioning policy or treatment of assets in terms of own funds requirements; to restrict or limit the business, operations or network of institutions or to request the divestment of activities that pose excessive risks to the soundness of an institution; require the reduction of the risk inherent in the activities, products and systems of institutions; require institutions to limit variable remuneration as a percentage of net revenues where it is inconsistent with the maintenance of a sound capital base; require institutions to use net profits to strengthen own funds; restrict or prohibit distributions or interest payments by an institution to shareholders, members or holders of Additional Tier 1 instruments (which meets the requirements of Article 52 of the capital requirements regulation) where the prohibition does not constitute an event of default of the institution; impose additional or more frequent reporting requirements, including reporting on capital and liquidity positions; impose specific liquidity requirements, including restrictions on maturity mismatches between assets and liabilities; require additional disclosures.

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Source: legislation.gov.uk · retrieved 2026-09-04