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

    PRA and FPC Finalize Changes to Leverage Ratio Framework in UK

    The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA

    October 08, 2021 WebPage Regulatory News
    News

    CFPB Proposes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.

    October 08, 2021 WebPage Regulatory News
    News

    PRA Decides to Maintain O-SII Buffers for Another Year

    The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.

    October 08, 2021 WebPage Regulatory News
    News

    FSB Report Assesses Implementation of Recommendations on Stablecoins

    The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.

    October 07, 2021 WebPage Regulatory News
    News

    APRA Updates Loan Serviceability Expectations for Home Lending

    In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.

    October 06, 2021 WebPage Regulatory News
    News

    CPMI and IOSCO Consult on Guidance on Stablecoin Arrangements

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.

    October 06, 2021 WebPage Regulatory News
    News

    EBA and EIOPA Set Out Work Priorities for 2022

    The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.

    October 05, 2021 WebPage Regulatory News
    News

    MFSA Issues Reporting Updates and Guidance for Banks

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.

    October 05, 2021 WebPage Regulatory News
    News

    EC Publishes Decision on List of Equivalent Third Countries Under CRR

    The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).

    October 04, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write-Down and Conversion Powers

    EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.

    October 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7552