Featured Product

    PRA Proposes Reporting and Rulebook Changes Under CRR and Solvency II

    March 26, 2020

    PRA published the consultation paper CP3/20, which sets out its proposals to make minor amendments to the PRA rules and supervisory statements, the National Specific Templates (NSTs) and associated LOG files, and the market risk sensitivities data item and associated instructions. The proposed changes fall under the Solvency II and Capital Requirements Regulation (CRR). Among other changes, CP3/20 consults on proposals to rectify errors identified within versions of PRA101 and Capital+ and to remove incorrect validations from Part 3 of the Branch Return Form template. The consultation closes on June 26, 2020.

    The proposals in CP3/20 are included in the following chapters:

    • In Chapter 2, PRA sets out proposals to remove redundant material, move certain expectations, align expectations with existing policy material, and make its expectations clearer. These proposals would be made effective through updates to SS24/15 on the PRA approach to supervising liquidity and funding risks (Appendix 1) and the instructions for completing PRA110 (Appendix 2).
    • In Chapter 3, PRA sets out a proposal to replace a reference to LIBOR with Sterling Overnight Index Average (SONIA) as the risk-free rate benchmark. The proposal would be made effective through an update to Rule 18.4(2) under the Insurance Company—Mathematical Reserves Part of the PRA Rulebook (Appendix 3).
    • Chapter 4 sets out the proposals to make minor updates, corrections, and clarifications to National Specific Templates (NSTs) and associated LOG files, along with the Market Risk Sensitivities (MRS) template and associated instructions. This chapter includes amendments to NSTs NS.00, NS.07, and NS.10 (template and LOG file) as well as NST NS.09 (LOG file). These templates will be made effective through an update to the Reporting Part of the PRA Rulebook and SS7/17 on data collection of market risk sensitivities under Solvency II.
    • In Chapter 5, PRA sets out proposals to make minor administrative changes and corrections to several Senior Managers & Certification Regime (SM&CR) forms (Appendices 12 and 13) to ensure that the forms are accurate and aligned with changes proposed by FCA. These changes do not alter the information required by the forms. The forms would be made effective through an update to the Senior Managers Regime Part of the PRA Rulebook (Appendix 11).
    • In Chapter 6, PRA sets out proposals to remove incorrect validations from Part 3 of the Branch Return Form template (Appendices 15 and 16). This change would be made effective through an update to the Regulatory Reporting Part of the PRA Rulebook (Appendix 18) and Appendix 13 of SS34/15 on guidelines for completing regulatory reports (Appendix 17).
    • Chapter 7 sets out proposals to rectify errors identified within versions of PRA101 and Capital+ (Appendix 19). This change would be made effective through an update to the Regulatory Reporting Part of the PRA Rulebook (Appendix 18) and, in addition, minor presentational changes to SS34/15 (Appendix 20) to harmonize and remove references to historic templates. This chapter is relevant to CRR firms.
    • Chapter 8 sets out a proposal to clarify that non-sequential amortization features constitute complex features in Significant Risk Transfer (SRT) transactions. This clarification would be made through an amendment to paragraph 2.8 of SS9/13 on Significant Risk Transfer under securitization (Appendix 21). This chapter is relevant to CRR firms.

    Pending consideration of the responses to this consultation, the proposed implementation dates are the dates of publication of the final policy. The proposals set out in CP3/20 have been designed in the context of the withdrawal of UK from EU and entry into the transition period, during which time UK remains subject to the European law. PRA will keep the policy under review to assess whether any changes would be required due to changes in the regulatory framework in UK at the end of the transition period, including those arising once any new arrangements with EU take effect. PRA has assessed that the proposals would not need to be amended under the EU (Withdrawal) Act 2018.

     

    Related Links

    Comment Due Date: June 26, 2020

    Effective Date: Publication Date of Final Policy

    Keywords: Europe, UK, Banking, Insurance, Securities, PRA Rulebook, Solvency II, CRR, National Specific Templates, Securitization, SONIA, Branch Return Form, Market Risk, SM&CR, PRA 110, PRA 101, Capital+, CP3/20, Credit Risk, LIBOR, Liquidity Risk, PRA

    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

    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

    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

    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