PRA Proposes Amendments to the Branch Return Form and Guidance
PRA proposed changes to the format and content of the Branch Return Form and completion guidance. PRA proposes, in the consultation paper CP8/19, that the changes to the Branch Return Form take effect for the reporting of the "H1 2020 Branch Return," that is for the period ending June 30, 2020. Comments on the consultation are requested by July 07, 2019. CP8/19 is relevant to all existing and prospective PRA-supervised branches of deposit takers and designated investment firms that are not UK-headquartered firms.
The Branch Return Form informs the PRA’s understanding of branches’ systemic importance and economic functions and facilitates the PRA’s approach to the supervision of branches, as set out in supervisory statement (SS1/18). The proposed changes would improve the quality of information provided by firms and enhance the ability of the Branch Return Form to meet these objectives in SS1/18. The proposals would amend the Branch Return Form in Rule 4.1 of the Incoming Firms and Third Country Firms Part of the PRA Rulebook (Appendices 1 and 2) and create reporting instructions for the form in SS34/15 (Appendices 4 and 5). The draft Branch Return Form and guidance are set out as appendices to CP8/19. In particular, PRA proposes to:
- Provide guidance for completion of the Branch Return Form in SS34/15 alongside the other reporting guidance for deposit takers and investment firms
- Align balance sheet concepts used in the Return with concepts and guidance used in the wider reporting framework of PRA, by requiring assets to be broken down into the standard categories such as Loans and advances and Derivatives
- Amend the reporting content, slightly reducing the number of data points reported by most firms
- Clarify that firms must report within 30 business days
- Replace the current Excel reporting format for the Branch Return Form with the XBRL reporting format
The proposals set out in CP8/19 have been designed in the context of the current UK and EU regulatory framework. PRA has assessed that the proposals will be affected if UK leaves EU with no implementation period in place. All the changes related to the withdrawal of UK from EU should be read in conjunction with the near-final PRA transitional direction published in the policy statement PS5/19. A second version of the proposed rules, which includes relevant changes related to Brexit, has been set out in Appendix 2. As these changes relate to reporting, they should be read in conjunction with SS2/19 on the PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after the withdrawal of UK from EU.
Related Links
Comment Due Date: July 07, 2019
Keywords: Europe, UK, Banking, Branch Return Form, CP8/19, SS1/18, PRA Rulebook, Reporting, PRA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
