PRA published a policy statement (PS16/19) that sets out final rules updating the requirements for ring-fenced bank reporting and Capital+ reporting. PS16/19 also covers the scope of Financial Reporting (FINREP) for certain firms that are not required to report this information under the Capital Requirements Regulation, or CRR (575/2013). PRA also updated its Rulebook on regulatory reporting for ring-fenced bodies, Capital+, and FINREP, in addition to the supervisory statement (SS34/15) on guidelines for completing the regulatory reports. The changes to Annex A of the PRA Rulebook for Capital+ templates PRA 101, PRA 102, and PRA 103 will take effect on March 01, 2020. The changes to Annex B of the PRA Rulebook and SS34/15 will take effect on June 01, 2020.
PS16/19 is relevant to UK banks and building societies as well as PRA-designated UK investment firms. PS16/19 follows the consultation paper CP19/18 on regulatory reporting with respect to EBA Taxonomy 2.9. PRA received no responses to CP19/18 related to EBA Taxonomy 2.9. PS16/19 should be read in conjunction with the implementing technical standards amending Regulation (EU) No 680/2014 on supervisory reporting and the associated amending regulation. EBA has made a number of changes to FINREP and COREP following its consultation on amendments to the technical standards on supervisory reporting. PRA has correspondingly made minor changes to the proposals in CP19/18 in line with the process set out in paragraph 1.10 of that consultation. The additional changes involve the:
- Deletion of the proposed new row 212 on prepayment fees on loans granted in RFB004g.
- Promotion of the proposed new sub-row 040 on taxes and duties in RFB004i from an "of which" item of Information Technology expenses to a stand-alone row.
- Addition of the new rows on the impact of stricter prudential requirements under Articles 124 and 164 of CRR to Capital+ templates PRA 101 and PRA 102. This has a minor effect on PRA 101 and no effect on PRA 102 in which the new cell is shaded grey for non-completion.
The changes ensure that the reporting templates continue to align with firms’ COREP and FINREP reporting. EBA has also made a series of changes to the content of the new FINREP non-performing loan (NPL) templates to simplify and streamline these post-consultation. A small number of new rows were added to the new FINREP templates F23 and F26. PRA does not consider that these changes alter the relevance of these templates to the scope of the FINREP extension proposed in the CP19/18 and these changes are not considered to change the nature of the templates consulted on.
The policy set out in PS16/19 has been designed in the context of the current UK and EU regulatory framework. PRA has assessed that the policy will not be affected in the event that UK leaves EU with no implementation period in place. As these changes relate to reporting they should be read in conjunction with SS2/19 on PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after the UK’s withdrawal from the EU.
Effective Date: March 01, 2020 (Annex A of PRA Rulebook); June 01, 2020 (Annex B of PRA Rulebook and SS34/15)
Keywords: Europe, UK, Banking, Reporting, Taxonomy, PS 16/19, CP 19/18, FINREP, CRR, PRA Rulebook, SS 34/15, PRA 101, PRA 102, PRA 103, COREP, EBA, PRA
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