SSR 7 Waiver and modification of rules

1. (1) For the purposes of SSR, under regulation 8(1)(b) of the Short Selling Regulations 2025, the FCA may dispense with, modify or reimpose (with or without modification) requirements that have been imposed under the rule making power in regulation 5 or 6 of the Short Selling Regulations 2025, in such cases or circumstances as may be determined by the FCA in rules.
2. (2) This chapter sets out the cases or circumstances in which the FCA may dispense with, modify or reimpose requirements (with or without modifications) imposed by rules.

1. (1) The FCA may dispense with, modify or reimpose (with or without modifications) any of the rules set out in SSR 2 on its own initiative or following an application as set out in SSR 7.4.
2. (2) The FCA may decide that:
   1. (a) a rule is not to apply to a person;
   2. (b) a rule is to apply to a person with modifications; or
   3. (c) a rule that was previously dispensed with is to be reimposed, with or without modifications.

An application to dispense with, modify or reimpose a rule in SSR 2 must set out:

1. (1) (a) the rules in respect of which the applicant seeks a dispensation for; 
2.      (b) the modification of rules sought; or
3.      (c) the reimposition of rules sought;
4. (2) a clear explanation of why the dispensation, modification or reimposition is required;
5. (3) details of any special requirements, such as the date by which the dispensation, modification or reimposition is required; and
6. (4) all relevant information relating to the person of which the FCA would reasonably expect notice.

1. (1) The application in SSR 7.4.1R must be submitted in the manner specified on the short selling section of the FCA website.
2. (2) The application must be accompanied by copies of any documents relevant to the application.

1. (1) The FCA may request such further information and documents as it reasonably considers to be necessary to determine the application.
2. (2) Different information may be required in relation to different applications or categories of application.

1. (1) In some cases, the FCA may modify a rule rather than dispense with the rule.
2. (2) The FCA may also impose conditions on a dispensation or modification, for example additional reporting requirements.
3. (3) A dispensation may be given for a specified period of time only, after which it will cease to apply.
4. (4) A person wishing to extend the duration of a dispensation should do so in accordance with SSR 7.4.2R(1).
5. (5) A dispensation will not apply retrospectively.

1. (1) Where a rule previously dispensed with or modified is reimposed under SSR 7.3.1R, the FCA may reimpose that rule with modifications to require a person to report net short positions that were reportable under SSR 2 during the time period for which the modification or dispensation was in effect.
2. (2) The FCA will consider the nature of the exceptional circumstances that led to the granting of the modification or dispensation, and the extent to which such circumstances may prevent a person from reporting, under a reimposed rule, net short positions that were reportable under SSR 2 during the time period for which the modification or dispensation was in effect.

A decision issued by the FCA under SSR 7.3.1R will be in writing and will indicate:

1. (1) in the case of a decision on an application:
   1. (a) (i) that application has been approved; or
   2.    (ii) if the application has been refused, the reasons for the decision; and
   3. (b) if relevant:
      1. (i) the date on which the decision takes effect;
      2. (ii) the date on which it expires; and
      3. (iii) any conditions to which the decision is subject; or
2. (2) in the case of a decision issued on the FCA's own initiative:
   1. (a) the reasons for the decision; and
   2. (b) if relevant:
      1. (i) the date on which the decision takes effect;
      2. (ii) the date on which it expires; and
      3. (iii) any conditions to which the decision is subject.