FCA and PRA hosted second meeting of the Climate Financial Risk Forum (CFRF) in July 2019. At the meeting, the working group chairs presented the draft plans and progress to date, with CFRF members noting the importance of considering how outputs draw on international best practice; how to ensure that outputs are suitable for firms of different types, sizes, and complexity; and how to ensure coordination between the working groups. The meeting also discussed the form of the outputs, the timeline for publishing these outputs, and ways to get wider industry input into the process. It was agreed that the CFRF will aim to publish these outputs in early 2020.
The next CFRF meeting will take place in the fourth quarter of 2019. The objective of CFRF is to build capacity and share best practices across financial regulators and industry to advance financial sector responses to the financial risks from climate change. It brings together senior representatives from across the financial sector, including banks, insurers, and asset managers. The forum is chaired by Sarah Breeden (Executive Director of International Banks Supervision, PRA) and Christopher Woolard (Executive Director of Strategy and Competition, FCA). Since its inception in March 2019, CFRF has set up four technical working groups on disclosure, scenario analysis, risk management, and innovation. Each working group is chaired by a CFRF member and supported by an external secretariat. Each working group has planned the approach they propose to take and the outputs they will deliver in terms of practical guidance and best-practice material.
Related Link: Press Release
Keywords: Europe, UK, Banking, Insurance, Securities, Climate Change Risks, Climate Financial Risk Forum, CFRF, ESG, FCA, PRA
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.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
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.
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.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.