Featured Product

    UK Government Issues Statutory Instrument on IFPR Changes

    July 18, 2022

    The UK government published the statutory instrument titled "Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2022.” This instrument makes consequential changes as a result of the Financial Services Act 2021 (FS Act), which introduced the framework for the Investment Firms Prudential Regime (IFPR), a bespoke prudential regime for non-systemic investment firms. The instrument shall enter into force on August 17, 2022.

    The FS Act also provided for the transfer of certain prudential regulation set out in UK legislation to rules made by the Prudential Regulation Authority (PRA). This enabled the PRA to implement the remaining aspects of the Third Basel Accord (Basel 3 standards) through regulator rules and will enable the future implementation of the Basel 3.1 standards. This instrument includes further consequential amendments following the introduction of the IFPR and Basel 3 standards on January 01, 2022. It repeals the Banking Act 2009 (Exclusion of Investment Firms of a Specified Description) Order 2014 as it is redundant following the removal of Financial Conduct Authority (FCA)-regulated investment firms from the UK resolution regime. This instrument makes transitional provision in respect of risk retention requirements for certain securitizations following the implementation of the IFPR. These requirements relate to the retention of a material net economic interest in a securitization by the originator, sponsor, or original lender to better align their interests with those of investors.

    Additionally, this instrument makes amendments to ensure that short-term liabilities owed to both PRA-regulated and FCA-regulated investment firms with permission to underwrite or deal on own account will continue to be exempt from bail-in. Bail-in involves shareholders of a failing institution being divested of their shares and creditors of the institution having their claims cancelled or reduced to the extent necessary to restore the institution to financial viability. Finally, this instrument addresses further deficiencies arising from the withdrawal of the United Kingdom from the European Union. This instrument also corrects a typographical error in the Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2021. There are no plans to consolidate the relevant legislation and HM Treasury does not propose to issue further guidance. The legislation applies to activities that are undertaken by small businesses, if they fall within the scope of the CRR or will fall in the scope of the IFPR. However, the number of small businesses (banks and investment firms) that fall within scope are minimal and HM Treasury does not consider there is a further need to minimize the impact of the requirements on small businesses. 

     

    Related Links

     

    Keywords: Europe, UK, Banking, Investment Firms, CRR, IFPR, Basel, Regulatory Capital, Statutory Instrument, Reporting, Securitization, HM Treasury, UK Government

    Featured Experts
    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514