Company: BCS
Filing Date: 2025-02-20
Form Type: 424B2
Source: 0001193125-25-030302
Chunk: 42

Company: BARCLAYS PLC
Filing Date: 2025-02-20
Form: 424B2
Chunk 42
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 continued since. The
U.K. CCyB is currently 2% as set by the Financial Policy Committee (“FPC”) of the Bank of England with effect from July 5, 2023. The FPC expects to increase the U.K. CCyB rate when financial vulnerabilities are building up and, in the
current context of its overall capital strategy, the FPC judges that the neutral rate for the U.K. CCyB is around 2%, in each case, as stated in its policy statement “The Financial Policy Committee (FPC’s approach to setting the countercyclical capital buffer (CCyB)” published in July 2023.

The PRA capital buffer rules applicable to the Issuer require
that firms that fail to meet the “combined buffer” are made subject to restricted discretionary payments (such as payments relating to common equity tier 1, variable remuneration and payments on additional tier 1 instruments) (the
“MDA Restrictions”). These types of restrictions have applied in the U.K. since January 1, 2016. In the event of a breach of the “combined buffer,” the MDA Restrictions will be scaled according to the extent of the breach of
the “combined buffer” and calculated as a percentage of the profits of the firm earned in each of the past four calendar quarters, net of distributions. Such calculation will result in a “maximum distributable amount” in each
relevant period. As an example, the scaling is such that in the bottom quartile of the “combined buffer,” no “discretionary distributions” will be permitted to be paid. As a consequence, in the event of breach of the combined
buffer (as applicable at Group level) the Issuer’s discretionary payments will be restricted and the Issuer may exercise its discretion to cancel (in whole or in part) interest payments in respect of the Securities.

S-28

Separately, certain regulatory requirements may restrict the Issuer’s ability to make
discretionary distributions in certain circumstances, in which case the Issuer may reduce or cancel interest payments on the Securities. For example, a firm will be deemed not to have met its combined buffer, and may become subject to the MDA
Restrictions, where it does not have own funds and eligible liabilities in an amount and quality to meet: (i) its combined buffer, (ii) its 4.5% Pillar 1 CET1 capital requirement and its Pillar 2A CET1 capital requirement