Featured Product

    BoE Proposes Minor Amendments Following Extension of Period for Brexit

    July 25, 2019

    BoE published a consultation paper (CP18/19) on the minor amendments that are needed to EU Exit Instruments of BoE and PRA, following the extension of the Article 50 period (announced on April 10, 2019) and the consequent change of the exit day (in the EU Withdrawal Act 2018) to October 31, 2019. CP18/19 follows the previous consultations on amending financial services legislation under the EU Withdrawal Act 2018. BoE and PRA continue to follow the approach set out in CP25/18 on the BoE approach to amending financial services legislation under the EU Withdrawal Act 2018. This consultation closes on September 18, 2019. Responses to CP18/19 will be shared with FCA.

    CP18/19 contains following two sections. Section A provides an update on BoE's and PRA’s intended use of the temporary transitional power provided for in the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019 (FSMA SI). Appendices 1 and 2 contain draft PRA and BoE transitional directions, respectively. BoE and PRA intend to publish the final directions and guidance ahead of exit day. Section B includes BoE and PRA consultation with proposals to fix deficiencies arising from the withdrawal of UK from EU and make consequential changes in light of the extension to the Article 50 period. Section B is split into two parts:

    • Part 1 sets out proposals by PRA in relation to the PRA Rulebook and Binding Technical Standards within the PRA remit that will be retained, or onshored, in UK law. Appendix 3 contains draft Technical Standards (Capital Requirements) (EU Exit) (No. 4) Instrument, appendix 4 contains draft Technical Standards (European Market Infrastructure) (EU Exit) (No. 4) Instrument, appendix 5 contains draft Technical Standards (Solvency II Directive) (EU Exit) (No.2) Instrument, and appendix 6 contains the draft PRA Rulebook: (EU Exit) (No. 2) Instrument. The draft PRA Rulebook EU Exit Instrument in Appendix 6 shows all proposed changes to the PRA Rulebook: (EU Exit) Instrument 2019 that were originally published on April 18, 2019. The further changes being consulted on in CP18/19 have been highlighted in yellow in Appendix 6.
    • Part 2 sets out the proposals by BoE, as the financial market infrastructure (FMI) competent authority, in relation to the Binding Technical Standards under the Central Securities Depositories Regulation (CSDR). Appendix 7 provides draft Technical Standards (Central Securities Depositories) (Amendment etc.) (EU Exit) (No.2) Instrument.

    CP18/19 is relevant to all firms authorized and regulated by PRA, including those that expect to have a deemed permission under the temporary permissions regime (TPR) or Financial Services Contracts Regime (FSCR), or that seek to apply for PRA authorization in the future. It is also relevant to FMIs recognized and supervised by BoE, including those that expect to have a deemed recognition under the temporary recognition regime. The changes proposed in CP18/19 would take effect on October 31, 2019 (exit day) only in the event that there is no implementation period. If the withdrawal agreement between UK and EU is ratified and the implementation period commences on exit day, the proposed changes would take effect after the implementation period. Further modifications to PRA and BoE rules and onshored Binding Technical Standards may be required to reflect any arrangements made between UK and EU as part of their future relationship.

     

    Related Links

    Comment Due Date: September 18, 2019

    Keywords: Europe, UK, Banking, Insurance, Securities, Brexit, CP 18/19, PRA Rulebook, Binding Technical Standards, Exit Instruments, FMI, CSDR, CP 25/18, PRA, FCA, BoE

    Related Articles
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Publishes Methodological Guide to Mystery Shopping

    The European Banking Authority (EBA) published a methodological guide to mystery shopping.

    July 21, 2021 WebPage Regulatory News
    News

    APRA Issues Update on Capital Reform Policy Settings for Banks

    The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.

    July 21, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Assess Continuity Planning of Market Infrastructures

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.

    July 21, 2021 WebPage Regulatory News
    News

    BoE Announces Changes to Validation Rules for Form BTL

    The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.

    July 20, 2021 WebPage Regulatory News
    News

    BCBS Proposes Changes to Process for Reviewing G-SIB Methodology

    The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.

    July 20, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7281