PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window
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

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
EC Proposes New Measures Under Capital Markets Union PackageRelated Articles
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.
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).
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.
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.
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.
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.
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)
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.
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.
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.