UK authorities jointly published the third edition of Regulatory Initiatives Grid setting out the planned regulatory initiatives for the next 24 months. The Grid is a joint effort of BoE, FCA, the Competition and Markets Authority, the Financial Reporting Council, the Payment Systems Regulator, the Information Commissioner’s Office, the Pensions Regulator, and HM Treasury (as an observer). The key upcoming initiatives in the latest iteration include work on implementation of open banking, phases 5 and 6 of bilateral margin obligations, implementation of interest rate risk in the banking book (IRRBB) requirements, LIBOR transition, implementation of Basel 3.1, and environmental, social, and governance (ESG) initiatives.
This edition of the Grid contains 128 initiatives, an increase over the 111 initiatives that were set out in the second edition, which was published in September 2020 and followed the publication of the first edition in May 2020. This edition includes initiatives from the Financial Reporting Council and a number of new initiatives that regulators are pushing forward in the areas of shared priority across public and private sectors (for example, eight new environmental, social, and governance or ESG initiatives). In addition, given the number of initiatives paused or delayed in response to the COVID-19 pandemic, fewer initiatives have fallen out of the Grid (by virtue of completion) than might typically be expected. This Grid is published at least twice a year to help manage the operational impact, on firms, of implementing such initiatives.
The Grid includes a broad range of initiatives which will impact the different sectors of the financial services industry in different ways. Some initiatives are actively aimed at reducing regulatory burden and/or simplifying regulation; these include the BoE and FCA’s work to transform data collection building on Digital Regulatory Reporting and the HM Treasury's proposal to streamline the FCA process for cancelling the authorization of inactive firms. The Grid also covers long-running, critically important initiatives that will require significant resources from firms to implement the necessary changes; these include the phase out of LIBOR, UK implementation of Basel 3.1, and strengthening operational resilience across a number of sectors. The Grid also sets out planned activities for a number of strategic reviews, including the Future Regulatory Framework Review, the Review of the UK Funds Regime, the Payments Landscape Review, the Review of Solvency II, and the consultation on restoring trust in audit and corporate governance. As the Grid shows, financial services industry stakeholders will have the opportunity to engage with Forum members’ longer-term thinking on significant developments within their sectors.
- BoE Notification
- FCA Notification
- Regulatory Initiative Grid (PDF)
- Regulatory Initiatives Grid Dashboard
Keywords: Europe, UK, Banking, Insurance, Securities, Basel, LIBOR, ESG, Climate Change Risk, Regulatory Initiatives GRID, Bilateral Margin Requirements, HM Treasury, PRA, BoE, FCA
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
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