HM Treasury, FCA, and PRA issued a joint statement on the implementation of prudential reforms in the Financial Services Bill. As the Financial Services Bill continues its progress through Parliament, the UK authorities considered it appropriate to update the industry on planned timelines for introducing the Investment Firms Prudential Regime (IFPR) and the implementation of Basel III reforms in UK (UK equivalent to the outstanding elements of the revised Capital Requirements Regulation, or CRR2, in EU). The target an implementation date for these two regimes is January 01, 2022.
This decision on the timelines follows feedback from industry in relation to these specific proposals and in response to the most recent Regulatory Initiatives Grid (September 2020), where industry raised concerns about the general volume of regulatory reform in 2021. HM Treasury will ensure that the relevant secondary legislation is in place in good time and the regulators will endeavor to provide industry with as much sight of the final rules as possible ahead of this date, to support effective implementation. Nevertheless, the April statement of HM Treasury and BoE, which welcomes the BCBS announcement to delay the implementation of the Basel 3.1 standards by one year, still applies.
Keywords: Europe, UK, Banking, Securities, Financial Services Bill, CRR2, IFPR, Basel 3.1, Basel, Investment Firms Regime, FCA, PRA, HM Treasury
Previous ArticlePRA Responds to Insurers on Framework for Assessing Climate Impact
PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.
SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.
EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.
HM Treasury extended the consultation period on Phase II of the Future Regulatory Framework (FRF) Review, from January 19, 2021 to February 19, 2021.
The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS, endorsed a coordinated approach to mitigate COVID-19 risks to the global banking system.
US Agencies (FDIC, FED, and OCC) issued a joint statement encouraging banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, to facilitate an orderly LIBOR transition.
ECB finalized guidance on the way it expects banks to prudently manage and transparently disclose climate and other environmental risks under the current prudential rules.
BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.
PRA published the policy statement PS23/20 on the calculation of stressed value at risk (sVAR) and risks not in value at risk (RNIV) under the market risk framework.
BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.