UK authorities jointly published the fourth edition of Regulatory Initiatives Grid, which sets out the planned regulatory initiatives for the next 24 months. The Grid is a joint effort of the Bank of England or BoE (including the Prudential Regulation Authority or PRA), the Financial Conduct Authority (FCA), the Competition and Markets Authority, the Financial Reporting Council, the Payment Systems Regulator, the Information Commissioner’s Office, the Pensions Regulator, and Her Majesty’s (HM) Treasury (as an observer). The upcoming activities in the latest edition involve work on phase 6 of bilateral margin obligations, implementation of interest rate risk in the banking book (IRRBB) requirements, LIBOR transition, and environmental, social, and governance (ESG) initiatives. The Grid includes a number of important climate-related initiatives, including new additions around introducing the Sustainable Finance Disclosures regime, net zero transition plans, and work on ESG issues in capital markets.
This edition of the Grid contains 134 initiatives, a small increase over the 128 initiatives in the edition published in May 2021. This increase is driven by initiatives being launched in response to the strategic reviews of the government and to the emerging themes or issues in Financial Services (for example, climate, diversity, and inclusion), additional entries as plans for legislative changes to deliver the Chancellor’s vision for Financial Services solidify, and initiatives being delayed or postponed in response to COVID-19 pandemic. The Grid includes a broad range of initiatives that will impact the different sectors of the financial services industry. Some initiatives, though creating an operational burden now, will ultimately simplify and streamline regulation. This includes, the BoE and FCA’s work to transform data collection building on the Digital Regulatory Reporting workstream and the HM Treasury's proposal to streamline the FCA process for cancelling the authorization of inactive firms.
The Grid also includes initiatives focused on ensuring resolvability and operational resilience in the sector as well as initiatives geared toward enhanced competition and consumer protection. Timelines have changed for 13 initiatives, including a delay to the consultation on Basel 3.1. There is one new initiative: a planned BoE consultation on changes to the metric used to determine the other systemically important institution (O-SII) buffer rates from total assets to the UK leverage exposure measure. The Grid also sets out planned activities for a number of strategic reviews, including the Future Regulatory Framework Review, Wholesale Markets Review, the Payments Landscape Review, the Review of Solvency II, and the consultation on restoring trust in audit and corporate governance. The Grid also provides more information on expected key milestones and on the engagement of the financial services industry stakeholder with Forum members’ longer-term thinking on these significant developments.
- BoE Notification
- FCA Notification
- Regulatory Initiative Grid (PDF)
- Regulatory Initiatives Grid Dashboard
- Regulatory Initiatives Grid Overview
Keywords: Europe, UK, Banking, Insurance, Securities, Basel, LIBOR, ESG, Climate Change Risk, Regulatory Initiatives Grid, Bilateral Margin Requirements, Regulatory Capital, PRA, BoE, FCA
Previous ArticleNGFS Survey Identifies Increasing Climate-Related Litigation Risk
The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.
The European Banking Authority (EBA) Single Rulebook Question and Answer (Q&A) tool updates for this month include answers to 10 questions.
The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.
The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).
The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.
The Board of Governors of the Federal Reserve System (FED) published a report that summarizes banking conditions in the United States, along with the supervisory and regulatory activities of FED.
The European Banking Authority (EBA) published the final report on draft regulatory technical standards for the calculation of risk-weighted exposure amounts of collective investment undertakings or CIUs, in line with the Capital Requirements Regulation (CRR).
The Australian Prudential Regulation Authority (APRA) recently completed two pilot initiatives in its 2020-2024 Cyber Security Strategy, which was published in November 2020.