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

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514