Featured Product

    PRA Finalizes Policy for Designation of Investment Firms

    December 15, 2021

    The Prudential Regulation Authority (PRA) finalizes changes, via the policy statement PS27/21, to its policy on designating investment firms. PS27/21 provides amendments to the Statement of Policy on the designation of investment firms for prudential supervision by PRA (Appendix 1) as well as the Definition of Capital Part of the PRA Rulebook (Appendix 2). PS27/21 is relevant to all PRA-designated UK investment firms and will take effect on January 01, 2022.

    PRA published the PS27/21, following the consultation paper CP15/21, to introduce minor changes to its policy on designating investment firms. The consultation took place from July 05, 2021 to October 05, 2021. PRA received no responses to the consultation and has made no changes to the draft policy. PRA proposed, via CP15/21, to amend the Statement of Policy on the designation of investment firms to:

    • Reflect proposed amendments of Her Majesty’s (HM) Treasury to the PRA-regulated Activities Order (PRA RAO), including the change in the scope of the firms that can be designated
    • Explain that there will usually be six months, rather than three months, between the Prudential Regulation Committee designating an investment firm and it becoming PRA-regulated
    • Note that PRA will take into account whether or not an investment firm is a clearing member of a central counterparty offering clearing services to other financial institutions (that are not clearing members themselves) when making a designation decision
    • Delete any obsolete text and make other minor textual amendments

    PRA also proposed to change the Definition of Capital Part of the PRA Rulebook to increase the base capital resources requirement for designated investment firms from EUR 730,000 to GBP 750,000 and to denominate it in Sterling. PRA has made no changes to the draft policy. However, it has updated the document formatting to bring it in line with current publication standards. This has resulted in minor changes to the paragraph numbering.

     

    Related Links

    Effective Date: January 01, 2022

    Keywords: Europe, UK, Banking, Investment Firms, Designation Process, IFPR, Regulatory Capital, PRA Rulebook, FCA, HM Treasury, PRA

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8286