FCA has published a modification by consent for firms subject to the Prudential Sourcebook for Investment Firms (IFPRU). Currently, the rules in IFPRU 11.6 that transposed Article 55 of the Recovery and Resolution Directive (RRD) and came into force on 1 January 2016 require firms and holding companies to include a term in the provisions governing certain third-country law liabilities under which the creditor recognises and agrees that the liability may be subject to write-down and conversion powers by a resolution authority. The requirement does not apply to liabilities excluded from the scope of bail-in by the RRD, nor to preferred deposits (of natural persons or micro, small or medium-sized enterprises). The modification FCA now offers disapplies the rules in circumstances where compliance with them in respect of certain liabilities is impracticable. It plans to consult on permanently amending the rules in line with the modification. (Source: FCA Publishes IFPRU Modification by Consent for Bail-in)