PRA published the policy statement PS1/19 that provides feedback to responses to the consultation paper CP22/18 titled "Liquidity reporting: FSA047 and FSA048" and the proposal in CP16/18, which intended to correct the level of consolidation of the PRA110 reporting requirements. It also contains the PRA’s final policy specifying amendments to the Regulatory Reporting Part of the PRA Rulebook (Appendices 1 and 2), along with the updated supervisory statement SS34/15 on guidelines for completing regulatory reports (Appendix 3). PS1/19 is relevant to banks, building societies, and PRA-designated investment firms.
SS34/15 was updated following the finalization of PS1/19 to reflect the extension to the FSA047 and FSA048 end date from June 30, 2019 to 31 December 2019 in Chapter 2 and Appendix 1.The changes to SS34/15 (Appendix 3) will take effect from the date of publication of PS1/19. The final policy confirms:
- Delay in terminating the FSA047 and FSA048 for six months from July 01, 2019
- Reduction in the reporting frequency of the FSA047 and FSA048 liquidity reports to align with that of the PRA110 liquidity report, in cases where it would otherwise differ, from July 01, 2019
- Extension of the submission deadline for firms that would report PRA110 on a weekly basis in business-as-usual conditions from one business day to two business days from July 01, 2019 until October 31, 2019
PRA had received six responses to CP22/18 and no comments were received in response to the proposal in CP16/18 to correct the applicable consolidation levels at which PRA110 will be reported. All six respondents noted, in qualitative terms, the additional reporting burden that extending the requirement to report the FSA047 and FSA048 for a further six months would entail. PRA has considered this feedback and has decided not to delay implementing the PRA110 report or to amend the associated reporting requirements. Following consideration of responses to CP22/18, PRA has made one change to PRA110 remittance dates during the dual reporting period and one clarification to reporting expectations in stress. The amendments to the Regulatory Reporting Part will be implemented by repealing instrument PRA 2018/3 (Appendix 1) and issuing a new instrument (Appendix 2).
The rules will take effect from the dates outlined in the new instrument. Six months remain until the implementation of PRA110 on July 01, 2019. PRA is reminding firms taking part in interim reporting to refer to the most recent questions and answers on the template and instructions and submit any questions that are not covered. PRA expects all other firms to continue to familiarize themselves with the policy, template and instructions, including the Q&As, to prepare for implementation on July 01, 2019.
Keywords: Europe, UK, Banking, Reporting, PRA110, Liquidity Risk, Pillar 2, PRA
Previous ArticleEBA Report Assesses Applicability of EU Law to Crypto Assets
EIOPA submitted—to the European Parliament, the Council of the European Union, and EC—its 2020, fifth, and last annual report on long-term guarantee measures and measures on equity risk.
The BIS Innovation Hub Swiss Centre, SNB, and the financial infrastructure operator SIX announced the successful completion of a joint proof-of-concept (PoC) experiment as part of the Project Helvetia.
EBA published the final draft regulatory technical standards for calculation of own funds requirements for market risk, under the standardized and internal model approaches of the Fundamental Review of the Trading Book (FRTB) framework.
EIOPA published discussion paper on a methodology for the potential inclusion of climate change in the Solvency II (sometimes also written as SII) standard formula when calculating natural catastrophe underwriting risk.
EU published, in the Official Journal of the European Union, corrigenda to the Directive and the Regulation on the prudential requirements and supervision of investment firms.
MAS proposed amendments to certain regulations, notices, and guidelines arising from the Banking (Amendment) Act 2020.
PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.
RBNZ launched consultations on the scope of the Insurance Prudential Supervision Act (IPSA) 2010 and on the associated Insurance Solvency Standards.
SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.
EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.