Featured Product

    PRA to Extend Temporary High Balance Coverage Amid COVID Crisis

    August 04, 2020

    PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance. PS19/20 amends the Depositor Protection Part of the PRA Rulebook (Appendix 1) and the Statement of Policy on the Deposit Guarantee Scheme (Appendix 2). PS19/20 also contains feedback to responses to the consultation paper CP6/20 on extending Temporary High Balance coverage. In CP6/20, PRA had proposed to increase the Temporary High Balance coverage period from six months to twelve months up until, and including, January 31, 2021. PRA highlights that responses to CP6/20 did not raise issues that would lead to any changes to the proposal. Coverage for Temporary High Balance will revert to six months, from February 01, 2021. The rule change and updated Statement of Policy will become effective on August 06, 2020.

    The Temporary High Balance rules of PRA extend FSCS coverage from GBP 85,000 to GBP 1 million for a period of six months from the point of deposit for certain qualifying life events, including deposits in preparation for the purchase and proceeds from the sale of residential properties, benefits payable on death, and life assurance payouts. The length of coverage for each Temporary High Balance would be determined by reference to the date on which a Temporary High Balance is credited to a depositor’s account, or the first date on which the Temporary High Balance becomes legally transferable to the depositor, whichever is later. The proposals were aimed to mitigate the consumer protection issues caused by the impact of COVID-19 on residential property and investment markets and on access to banking services, for some depositors. 

    PS19/20 is relevant to retail financial consumers that are, or may become, Temporary High Balance depositors. PS19/20 is also relevant to FSCS and to all authorized deposit takers. PS19/20 has been designed in the context of withdrawal of UK from EU and entry into the transition period, during which time UK remains subject to European law. PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework at the end of the transition period, including those arising once any new arrangements with EU take effect. PRA has assessed that the policy would not need to be amended under the EU (Withdrawal) Act 2018. 

     

    Related Links

    Effective Date: August 06, 2020

    Keywords: Europe, EU, Banking, COVID-19, FSCS, PRA Rulebook, Deposit Guarantee Scheme, Residential Property, Credit Risk, CP6/20, PS19/20, Temporary High Balance Coverage, PRA

    Featured Experts
    Related Articles
    News

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7311