Featured Product

    BoE Issues Update on Regulatory Approach to Preparations for Brexit

    March 28, 2018

    BoE issued an update on the regulatory approach to preparations for the withdrawal of the UK from the EU (Brexit). BoE welcomes the agreement between the UK and EU27 that there should be an implementation period until the end of 2020, as part of the UK’s Withdrawal Agreement with the EU. The agreement is subject to further negotiations between the UK and EU before it is finalized. BoE also published a letter for the preparations of central counterparties (CCPs) and a letter from Sam Woods (CEO of PRA) on Brexit preparations for firms. In addition, FCA published a statement on the EU withdrawal, following the March European Council.

    In light of the agreement at the EU Council, BoE considers it reasonable for firms currently carrying on regulated activities in the UK by means of passporting rights, or the EU framework for central counterparties, to plan that they will be able to continue undertaking these activities during the implementation period in much the same way as now. In the letters published, BoE has made clear to relevant firms that they may plan on the assumption that UK authorization or recognition will only be needed by the end of the implementation period. The government has committed to bring forward legislation, if necessary, to create temporary permission regimes to allow relevant firms to continue their activities in the UK for a limited period after withdrawal. In the unlikely event that the Withdrawal Agreement is not ratified, this provides confidence that a back-stop will be available.

    Moreover, the Financial Policy Committee (FPC) continues to track a wider checklist of actions that authorities and firms must take to mitigate risks of disruption to financial services. FPC published its most recent quarterly assessment of these actions on March 16. Bank also confirms its approach to the authorization and supervision of international banks, insurers, and CCPs. In the context of their future preparations for Brexit, the European Economic Area banks and insurers may (if they are not conducting material retail business) apply for authorization to operate as a branch in the UK. Non-UK CCPs should continue engaging with BoE on the UK recognition process. The foundation of the BoE's approach to preparations for EU withdrawal remains the presumption that there will continue to be a high degree of supervisory cooperation between the UK and EU. 

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance, Securities, Brexit, Withdrawal Agreement, CCPs, Temporary Permissions Regime, Passporting Regime, FCA, BoE

    Related Articles
    News

    HKMA Revises Implementation Schedule for Initial Margin Rules

    HKMA intends to adopt a revised implementation schedule for the margin requirements for non-centrally cleared derivatives.

    August 16, 2019 WebPage Regulatory News
    News

    HKMA Revises Guideline on Application of Banking Disclosure Rules

    HKMA issued a revised version of the Supervisory Policy Manual module CA-D-1 on guideline on the application of the Banking (Disclosure) Rules (BDR).

    August 16, 2019 WebPage Regulatory News
    News

    ECB Decision on Recognizing Reporting Member States Under AnaCredit

    ECB has finalized the Decision 2019/1348 (ECB/2019/20) that establishes procedure for recognizing non-euro area member states as reporting member states under the AnaCredit Regulation (EU 2016/867).

    August 16, 2019 WebPage Regulatory News
    News

    FASB Proposes to Extend CECL Standard Deadline for Certain Entities

    FASB proposed an Accounting Standards Update that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on current expected credit losses (CECL), leases, and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    IASB Adds Phase Two of IBOR Reform to Its Work Plan

    IASB (or the Board) has added the second phase of its project focused on potential financial reporting implications linked to the interest rate benchmark reform—interbank offer rate (IBOR) reform—to its work plan.

    August 15, 2019 WebPage Regulatory News
    News

    FED Updates Draft Instructions for Proposed FR Y-14 Reporting Forms

    FED updated draft instructions for the monthly, quarterly, and annual capital assessments and stress testing reports, also known as forms FR Y-14M, FR Y-14Q, FR Y-14A, respectively.

    August 15, 2019 WebPage Regulatory News
    News

    FASB Proposes Taxonomy Changes Related to Topics 326, 815, and 842

    FASB is proposing taxonomy improvements for the proposed Accounting Standards Update on clarifying the interactions among topic 321 on investments in equity securities), topic 323 on investments under equity method and joint ventures), and topic 815 on derivatives and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    OCC Updates Bank Accounting Advisory Series in August 2019

    OCC released an update to the Bank Accounting Advisory Series (BAAS), which reflects accounting standards issued by FASB, through March 31, 2019, on topics such as hedging and credit losses.

    August 15, 2019 WebPage Regulatory News
    News

    APRA Consults on Final Phase Margin Rules for Uncleared Derivatives

    APRA is consulting on amendments to the prudential standard CPS 226 on margin and risk mitigation requirements for non-centrally cleared derivatives.

    August 14, 2019 WebPage Regulatory News
    News

    APRA Applies Additional Capital Requirement for an Australian Insurer

    APRA decided to apply an additional $250 million capital requirement to Allianz Australia Limited to reflect the issues identified in the risk governance self-assessment by the insurer.

    August 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3646