General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
May 22, 2018

PRA published the consultation paper CP12/18 that sets out the proposals on its approach to the EU Securitization Regulation and certain aspects of the revised Capital Requirements Regulation (CRR) banking securitization capital framework. The paper also proposes to update firms on the PRA expectations about Significant Risk Transfer (SRT) securitization. Comment period on CP12/18 ends on August 22, 2018.

The scope of application for the proposals in CP12/18 varies, depending on whether the proposals relate to the implementation of the Securitization Regulation, revisions to the banking securitization capital framework, or SRT securitization. The consultation paper is, therefore, split into two parts: Part 1 covers the new EU securitization framework (relevant for all PRA-authorized CRD IV firms and all PRA-authorized Solvency II firms and potentially other firms pending HM Treasury discretions—see paragraph 2.4) and Part 2 covers SRT securitization (relevant for PRA-authorized CRD IV firms only). PRA proposed to introduce a new Supervisory Statement on general requirements and capital framework for securitization, with the aim to set out the PRA approach and expectations in relation to:

  • Chapter 2 (provisions applicable to all securitizations) of the incoming EU Securitization Regulation
  • Firms that intend to sponsor Simple, Transparent, and Standardized (STS) Asset-Backed Commercial Paper (ABCP) programs
  • The incoming securitization capital framework introduced via amendments to the CRR

The Supervisory Statement SS9/13 titled "Securitization," which currently covers only SRT securitization, is proposed to be renamed "Securitization: Significant Risk Transfer." PRA proposed to amend this supervisory statement to clarify the role of firms’ senior management, prudential treatment of excess spread, and certain aspects of the PRA assessment of commensurate risk transfer with respect to SRT securitization. The date of application for the new securitization legislative framework is January 01, 2019. The proposals in the new PRA supervisory statement on general requirements and capital framework for securitization, along with SS31/15, would be effective from January 01, 2019. The proposals that amend SS9/13 would apply immediately after the publication of a policy statement to all PRA-authorized CRD IV firms, as they are equally applicable to the current and amended CRR. 


Related Links

Comment Due Date: August 22, 2018

Effective Date: January 01, 2019

Keywords: Europe, UK, Banking, Insurance, CRR, CRD IV, Basel III, Solvency II, ABCP Securitization, Securitization Regulation, Significant Risk Transfer, PRA

Related Insights

FSB Report Examines Financial Stability Implications of Fintech

FSB published a report that assesses fintech-related market developments and their potential implications for financial stability.

February 14, 2019 WebPage Regulatory News

US Agencies Amend Regulatory Capital Rule to Allow Phase-In for CECL

US Agencies (FDIC, FED, and OCC) adopted the final rule to address changes to credit loss accounting under the U.S. generally accepted accounting principles; this includes banking organizations’ implementation of the current expected credit losses (CECL) methodology.

February 14, 2019 WebPage Regulatory News

OCC Consults on Company-Run Stress Test Requirements for Banks

OCC proposed amendments to its company-run stress testing requirements for national banks and Federal savings associations, consistent with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

February 12, 2019 WebPage Regulatory News

CFTC Extends Comment Periods for Trade Execution Requirement Proposals

CFTC announced that it is extending comment period for the proposed amendments related to the regulations on swap execution facilities (SEF) and trade execution requirement.

February 12, 2019 WebPage Regulatory News

OCC Proposes to Renew Information Collection Under Stress Test Rule

OCC is proposing to renew its information collection titled “Annual Stress Test Rule” (OMB Control No: 1557-0311). Comments must be received on or before March 13, 2019.

February 11, 2019 WebPage Regulatory News

OSFI Consults on NSFR Disclosure Requirements for D-SIBs

OSFI proposed the draft guideline on the net stable funding ratio (NSFR) disclosure requirements for domestic systemically important banks (D-SIBs).

February 11, 2019 WebPage Regulatory News

EC Amends Its Regulation to Clarify Impairment Requirements for IFRS 9

EC published the EU Regulation 2019/237 that amends Regulation (EC) No 1126/2008 adopting certain international accounting standards, in accordance with Regulation (EC) No 1606/2002 regarding International Accounting Standard (IAS) 28 on Investments in Associates and Joint Ventures.

February 11, 2019 WebPage Regulatory News

FSB Chair Randal Quarles Speaks About the Upcoming Work of FSB

While speaking at the BIS Special Governors Meeting in Hong Kong, Randal K. Quarles, the Chair of FSB and Vice Chair of FED, discussed his views on how the work of FSB must evolve and the key principles that, he believes, should inform that work.

February 10, 2019 WebPage Regulatory News

OSFI Proposes to Amend the Liquidity Adequacy Requirements for Banks

OSFI proposed revisions to the Liquidity Adequacy Requirements (LAR) Guideline for banks. OSFI published the proposed drafts (with proposed changes highlighted in yellow) of Chapters 1,2, 4, and 5 of the LAR guideline.

February 08, 2019 WebPage Regulatory News

HKMA Publishes FAQs on Local Implementation of IRRBB Framework

HKMA published the frequently asked questions (FAQs) related to the local implementation of the interest rate risk in the banking book (IRRBB).

February 08, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2593