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At the start of the season its advisable to apply for Club Approval for your club. This is a check so that you know you have things in place for DBS etc. You may not use it but it is in place. The form is automatically emailed to the CBSM who will either approve or ask for further information.
Playing up for a 17 yr old to adult is self explanatory but if the player has turned 18 within the season there is no need to apply for approval. Once your application has been approved for the 17 yr old, you can go ahead and register the player on v12.
Players in Age Grade playing up is fairly common once they have been assessed by a L2 qualified coach and approved. Playing Down is rather different and there has to be a strong case for Playing Down to be approved; in the year below at school, slight build, just starting rugby and lacking confidence or special needs.
Combining age groups is not an automatic approval. Each case is judged on it merit. Please read Reg 15 to see how this would be applied and its implications.