Featured Product

    PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window

    November 25, 2021

    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. PRA is proposing other minor formatting and clarification amendments to the Operational Resilience (Appendix 1) and Operational Continuity Parts of the PRA Rulebook (Appendix 3), along with the consequential amendments to the supervisory statement SS1/21 on operational resilience (Appendix 2). This consultation closes on January 14, 2022, with PRA proposing to implement changes for the Operational Resilience Part from March 31, 2022 and for the Operational Continuity Part from January 01, 2023.

    In CP21/21, PRA is proposing to change Chapter 8 of the Operational Resilience Part, from imposing certain obligations on firms that are part of a group and/or consolidated group, to imposing these obligations onto the holding company; these obligations would not apply to insurance holding companies. Applying Chapter 8 (Group Arrangements) of the Operational Resilience Part to financial and mixed activity holding companies gives effect more directly to the initial policy intention, which stated that, where applicable, "a group-level view" of operational resilience is taken. This ensures that the risks of the whole group, including the parts that are not subject to individual requirements, are taken into account. Applying these obligations on the holding companies directly rather than on individual firms within their groups would be more proportionate and would align the Operational Resilience Part with the PRA approach to consolidated prudential requirements. The proposals on operational resilience are relevant for UK banks, building societies, and, PRA-designated investment firms, financial holding companies, mixed financial holding companies, and, UK Solvency II firms, and the Society of Lloyd’s and its managing agents. Meanwhile, the proposals on operational continuity in resolution are relevant for UK banks, building societies, and PRA-designated UK investment firms currently in scope of, or likely to come in scope of, the Operational Continuity Part of the PRA Rulebook.

    In addition to this PRA consultation, the Bank of England (BoE) published the Statistical Notice 2021/14, which announces that the User Acceptance Testing (UAT) window for Statistical Reporting on BEEDS is being extended until December 10, 2021 and the the Known Issues log has been updated. The Notice also informs that Online Statistical Collection Application (OSCA) has recently undergone system maintenance and, as part of this maintenance work, the minimum requirement for OSCA public website and web service is to now use TLS version 1.2. To allow reporting institutions some time to upgrade their systems, older versions TLS 1.0 and 1.1 will be supported until February 12, 2022, a date after which only TLS 1.2 will be supported.

     

    Related Links

    Comment Due Date: January 14, 2022

    Effective Date: March 31, 2022 (Operational Resilience)/January 01, 2023 (Operational Continuity)

    Keywords: Europe, UK, Banking, CRR, Basel, Operational Resilience, Operational Continuity, Statistical Notice, BEEDS Testing, Statistical Reporting, TLS Version 1.2, PRA Rulebook, OSCA, PRA, BoE

    Featured Experts
    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8286