PRA Allows Flexibility in Regulatory Reporting in Response to COVID-19
PRA has published guidance, for regulated firms, on submitting annual and other types of regulatory reporting, in response to the ongoing COVID-19 conditions. These PRA-regulated firms include UK banks, building societies, designated investment firms, and credit unions. In the guidance, PRA recognizes that the pandemic may be posing challenges for some firms in terms of their ability to meet the regulatory reporting deadlines. PRA is prepared to consider being flexible in its expectations of firms’ submissions for such reporting where the remittance deadlines fall on or before March 31, 2021 and where the reporting is not time-critical for supervisors.
Additionally, consistent with the measures announced by FCA and Financial Reporting Council (FRC), PRA will accept a delay in the submission by UK banks and designated investment firms of their annual reports and accounts by up to two calendar months, where the remittance deadlines in the PRA Rulebook fall on or before July 31, 2021. For building societies, while PRA is prepared to accept a similar delay, firms considering this may need to consider other statutory requirements that apply to them. As highlighted by FCA and FRC, the recent government guidance on COVID-19 restrictions and an increase in COVID-19 cases may impact the time needed by firms and their auditors to complete the work necessary to finalize annual report and accounts. Particularly, the requirement for annual report to be audited may make timely submission challenging for some firms. Firms are advised to keep their supervisory contact at PRA informed about any significant developments in their financial circumstances; nevertheless, firms that are able to submit before the end of the delayed submission window are encouraged to do so.
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Keywords: Europe, UK, Banking, Securities, Accounting, COVID-19, Reporting, FCA, PRA
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