Featured Product

    PRA to No Longer Require Certain Firms to Submit FSA047/048 Returns

    January 23, 2020

    PRA published a letter confirming that firms are no longer expected to submit the FSA047/048 returns after January 23, 2020. This letter from Sarah Breeden, the Executive Director of UK Deposit Takers Supervision, and David Bailey, the Executive Director of International Banks Supervision, has been addressed to the CFOs. This letter refers only to the enhanced liquidity monitoring by PRA in the lead up to EU withdrawal. Liquidity coverage and other business-as-usual obligations (including firm-specific Pillar 2 guidance) remain unchanged and continue to apply. In line with the published PRA policy, PRA expects firms to continue to prudently manage their liquidity positions on an individual currency basis.

    PRA has been monitoring the liquidity positions of the largest and most systemically important banks and investment firms active in the UK against a bespoke risk appetite. This had been designed to reflect the potential for market volatility, should the UK leave the European Union without a Withdrawal Agreement, to impact firms’ liquidity positions. This risk appetite has been based on the firms’ liquidity positions reported through the FSA047/048 returns and expressed as a minimum survival period calculated under different wholesale stress scenarios. The parliamentary stages of the European Union (Withdrawal Agreement) Bill were completed on January 22. Since, as of the date of this letter, the likelihood that the UK would leave the EU without a Withdrawal Agreement appeared very low, PRA no longer considered the bespoke risk appetite to be required.

    Following the third extension of Article 50, in October 2019, PRA had asked the firms to continue to submit FSA047/048 returns after December 31, 2019, the date at which it had previously planned to cease their collection, to facilitate the continued monitoring against the bespoke risk appetite. With the change in risk appetite, PRA can confirm that firms are no longer expected to submit these returns after January 23. However, where firms had been asked to continue reporting their FSA047/048 returns after December 31, 2019, PRA asks that they maintain this capability to report, if required, until the end of February 2020. PRA states that firms should continue to assess, manage, and mitigate risks arising from the UK’s withdrawal from the European Union on an ongoing basis. The Authority expects firms to remain mindful of the operational implications of withdrawal, ensuring they are able to maintain good governance and manage their post-Brexit operations appropriately. 

     

    Related Link: Letter (PDF)

     

    Keywords: Europe, UK, Banking, Liquidity Risk, Brexit, Withdrawal Agreement, Reporting, FSA 047, FSA 048, Pillar 2, PRA

    Featured Experts
    Related Articles
    News

    APRA Updates Validation and Derivation Rules in September 2020

    APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    September 24, 2020 WebPage Regulatory News
    News

    EC Proposes Frameworks for Crypto-Assets and Operational Resilience

    EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.

    September 24, 2020 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposals to Amend Securitization Framework

    ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.

    September 24, 2020 WebPage Regulatory News
    News

    FCA Consults on Regulation of International Firms in UK

    FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.

    September 23, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Capital Adequacy Requirements of Banks

    MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.

    September 23, 2020 WebPage Regulatory News
    News

    FCA to Begin to Move Firms to New Data Collection Platform RegData

    FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.

    September 23, 2020 WebPage Regulatory News
    News

    ISDA Expects IBOR Fallbacks to be Effective by End of January 2021

    ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.

    September 23, 2020 WebPage Regulatory News
    News

    APRA Reviews Repayment Deferral Plans, Identifies Best Practices

    APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.

    September 22, 2020 WebPage Regulatory News
    News

    ESAs Assess Risks to Financial Sector After COVID-19 Outbreak

    ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.

    September 22, 2020 WebPage Regulatory News
    News

    BoE Confirms Withdrawal of COVID Corporate Financing Facility

    BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.

    September 22, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5836