UK Regulators Announce Measures to Address Impact of COVID-19
UK Regulatory Authorities published statements and guidance addressed to financial entities on dealing with the impact of the coronavirus (COVID-19) outbreak. FCA announced extending the closing date for responses to its open consultation papers and calls for input until October 01, 2020 and rescheduling most other planned work. The delayed consultation papers include consultation (CP19/32) on new requirements to strengthen operational resilience in the financial services sector and consultation (CP20/3) on proposals to improve listed issuers' financial disclosures related to climate change. FCA also decided to delay certain publications that are due before the end of June, including joint the PRA-FCA work with the Climate Financial Risk Forum (CFRF) to develop industry led guidance on how to integrate climate-related risks into business decision-making across the financial services sector.
Additionally, FCA has set out expectations for general insurance firms and provided information for consumers about what they should see from their insurance provider during the COVID-19 pandemic. FCA also provided clarifications in relation to suspension of products and policy renewals. The regulator emphasized the need for all general insurance firms to have plans in place to manage and mitigate the operational impact of COVID-19. FCA strongly requests all listed companies to observe a moratorium on the publication of preliminary financial statements for at least two weeks. FCA confirms it in talks with Financial Reporting Council (FRC) and PRA about a package of measures aimed to ensure that companies take the necessary time in these uncertain times to prepare appropriate disclosures and address current practical challenges; the three bodies (FCA, FRC, and PRA) intend to announce additional details shortly.
HM Treasury and BoE announced a COVID Corporate Financing Facility (CCFF) to provide additional help to firms to bridge through COVID-19 related disruption to their cash flows. The CCFF will provide funding to businesses by purchasing commercial paper of up to one-year maturity, issued by firms. By providing an alternative source of finance for a wide range of companies, the scheme will help to preserve the capacity of the banking system to lend to other companies, including small and medium-size enterprises, which rely on banks. FCA also published new guidance for mortgage lenders and administrators and small business lenders.
Related Links
- FCA Notification
- FCA Expectations for General Insurance Firms
- FCA Guidance for Mortgage Providers
- FCA Statement on Publication of Preliminary Financial Accounts
- BoE Press Release on CCFF
Keywords: Europe, UK, Banking, Insurance, Securities, COVID 19, CCFF, Climate Change Risk, ESG, FCA Handbook, Disclosures, General Insurance, PRA, BoE, FCA, HM Treasury
Previous Article
ISDA Publishes Factsheet on Benchmark Fallbacks for IBORRelated Articles
EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
FASB Proposes to Delay Implementation of Insurance Contracts Standard
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB Set Out Recommendations for Benchmark Transition
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS Sets Out Recommendations for Benchmark Transition for Insurers
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA Updates Reporting Manual on European Single Electronic Format
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).
EBA Calls on Resolution Authorities to Consider Impact of COVID Crisis
EBA published a statement on resolution planning in light of the COVID-19 pandemic.
ECB Guideline on Materiality Threshold for Credit Obligations Past Due
ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.
FED Temporarily Revises FR Y-14 With Respect to PPP and CARES Act
FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
