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
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.