August 31, 2018

PRA updated the supervisory statement SS19/13 on resolution planning. SS19/13 sets out the resolution planning information that firms are expected to provide to PRA, in accordance with the PRA Resolution Pack rule in the PRA Rulebook. Information on resolution planning will be requested from firms in two phases, with Phase 1 outlining baseline information needed to establish a resolution strategy and Phase 2 outlining the detailed information needed to support the preferred resolution strategy of authorities.

The national resolution authorities can set alternative requirements for firms subject to simplified obligations as defined in the EBA regulatory technical standards (RTS) on simplified obligations. BoE, as the resolution authority in the UK, anticipates that all UK-headquartered firms, which have been notified that the preferred resolution strategy does not involve the use of stabilization powers, will be subject to simplified obligations in respect of resolution planning. These firms will not need to submit the implementing technical standard templates, unless BoE informs them otherwise. BoE will also inform subsidiaries of third-country groups where they are not subject to simplified obligations. Firms subject to simplified obligations should continue to follow the expectations set out in SS19/13 in respect of the Phase 1 resolution planning data submissions.

EBA, in April 2018, had submitted the draft final implementing technical standards on information for resolution planning to EC for approval; these stipulate that firms are expected to start reporting using the new templates by the end of May 2019. The implementing standards set minimum data requirements and will be directly applicable to firms. Assuming that EC adopts the implementing standards in its current form, all non-simplified obligation firms will be required to submit the templates on an annual basis in accordance with the implementing standards. BoE expects firms to submit information in XBRL format. BoE and PRA recognize, however, that this could lead to duplication in reporting and put undue pressure on firms. Thus, PRA has decided to delay resolution pack Phase 1 submissions under SS19/13 for these firms until 2020 (or later as required by the supervisor), as it assesses the impact of the implementing standards on the expectations in SS19/13. During this period, resolution planning information can still be requested from firms under the SS19/13 Phase 2 requirements. The supervisory contact of a firm will get in touch by September 06, if the firm is affected by these changes.

 

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Keywords: Europe, UK, Banking, Resolution Planning, Simplified Obligations, SS19/13, Reporting, EBA, EC, PRA

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