PRA finalized the policy proposed in CP14/19 in relation to amendments to PRA rules to introduce a further threshold of total assets of GBP 5 billion or above for PRA110 reporting frequency. PRA has published a policy statement (PS26/19) that contains final amendments to the Reporting Part of the PRA Rulebook (Appendix 1) and the updated supervisory statement (SS24/15) on PRA approach to supervising liquidity and funding risks (Appendix 2). PS26/19 also provides feedback to responses to consultation paper (CP14/19) on PRA110 reporting frequency threshold. PS26/19 is relevant to PRA-authorized UK banks, building societies, and PRA-designated UK investment firms, referred to collectively as firms with total assets of GBP 5 billion or above, a figure that is calculated in accordance with the Council Directive 86/635/EEC. The implementation date for PS26/19 is May 01, 2020.
PRA110 reporting commenced on July 01, 2019. From that date, firms with total assets, calculated in accordance with Council Directive 86/635/EEC, equal to or greater than EUR 30 billion on either an individual basis or UK consolidation group basis are required to report on a weekly basis, unless there is a specific liquidity stress or market liquidity stress, in which case the PRA110 will be reported every business day. Firms with total assets less than EUR 30 billion (calculated on the same basis) report monthly, unless there is a specific liquidity stress or market liquidity stress, in which case PRA110 will be reported weekly.
PRA, in CP14/19, had proposed to amend PRA rules to introduce a further threshold of total assets of GBP 5 billion or above for PRA110 reporting frequency and to update SS24/15 paragraph 6.2A to align with the proposed PRA110 reporting frequency threshold. PRA received two responses to CP14/19. The respondents made a number of useful observations, which are summarized in Chapter 2 of PS26/19; however, after consideration, PRA has decided not to change the proposed policy. The policy set out in PS26/19 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 the UK leaves the EU with no implementation period in place.
Effective Date: May 01, 2020
Keywords: Europe, UK, EU, Banking, Pillar 2, Reporting, PS 26/19, CP 14/19, SS 24/15, PRA 110, Liquidity Risk, Basel III, PRA
Previous ArticleDNB Examines Results of Stress Tests for Dutch Pensions Sector
HM Treasury notified that, after considering all responses, the government intends to bring forward further legislation, when the Parliamentary time allows, to address issues identified in the consultation on supporting the wind-down of critical benchmarks.
EIOPA launched the 2021 stress test for the insurance sector in EU.
UK authorities jointly published the third edition of Regulatory Initiatives Grid setting out the planned regulatory initiatives for the next 24 months.
EC is requesting feedback on the proposed Commission Delegated Regulation on the content, methodology, and presentation of information that large financial and non-financial undertakings should disclose about their environmentally sustainable economic activities under the Taxonomy Regulation.
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.
BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.