PRA published a consultation paper CP9/17, proposing a new supervisory statement on recovery planning, which sets out additional expectations of firms. This proposed statement will supersede the earlier supervisory statement SS18/13. CP9/17 also includes a proposed update to SS8/16 titled "Ring-Fenced Bodies," which clarifies PRA expectations on the approach to recovery planning for groups containing a ring-fenced body.
Although the content of SS18/13 remains relevant, the new proposed supervisory statement provides additional details on the PRA expectations to help improve the quality of firms’ plans. The consultation explains areas where the PRA is introducing significant updates to SS18/13 and explains the rationale for doing so. Chapter 2 of this consultation sets out proposals related to key recovery plan components and considerations, Chapter 3 sets out proposals on recovery planning for UK subsidiaries of non-EU banks, and Chapter 4 sets out a proposed amendment to SS8/16. Appendices contain the draft supervisory statement for recovery planning (appendix 1) and the proposed amendments to SS8/16 (Appendix 2). PRA intends to publish a final policy statement in the second half of 2017, subject to consultation responses. The final policy statement will specify when firms will be expected to comply with the supervisory statement. This consultation paper is relevant to UK banks, building societies, PRA-designated investment firms, and qualifying parent undertakings, to which the Recovery Planning Part of the PRA Rulebook Applies.
Related Link: Notification
Comment Due Date: September 21, 2017
Keywords: Europe, PRA, Banking, UK, SS18/13, CP9/17, Recovery Planning
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