Featured Product

    UK Authorities Update Rules and Guidance for End of Brexit Transition

    October 02, 2020

    BoE and PRA updated, on their respective webpages, information on their approaches to the temporary transitional power (TTP) related to the withdrawal of UK from EU. BoE and PRA also published general guidance on the transitional directions; the guidance supports the draft transitional directions published as part of the consultation paper CP13/20 on proposed changes to certain Exit Instruments before the end of the Brexit transition period. Additionally, BoE made available a checklist of actions to avoid disruption (stemming from cross-border activities) to end-users of financial services at the end of the transition period on December 31, 2020. Finally, with regard to the Brexit transition, FCA updated its Handbook with the rules that will apply at the end of the transition period, also setting out details on how it intends to use the temporary transitional power.

    The general guidance on the transitional directions of BoE and PRA explains the general effect of the transitional direction of BoE and PRA, which is to delay onshoring changes that fall in the remit of BoE and PRA until March 31, 2022. The guidance also explains how firms and financial market infrastructure entities should interpret the regulatory obligations that apply immediately before the end of the transition period. The guidance notes exceptions to the general approach of BoE and PRA and the specific approach of PRA to the use of the transitional power for former passporting firms, in particular firms in the temporary permissions regime and Supervised Run-off Regime. Firms should have regard to these guidance while the transitional relief granted under the direction is in effect. The direction will come into effect at the end of the transition period and will apply until March 31, 2022, unless BoE and PRA decide to change this in future. 

    The temporary transitional power allows the financial services regulators of UK to delay or phase-in onshoring changes to the UK regulatory requirements arising at the end of the transition period. BoE, PRA, and FCA intend to use the temporary transitional power to provide broad transitional relief, with key exceptions, for 15 months after the end of the transition period, until March 31, 2022 (the temporary transitional power period). Where the temporary transitional power applies, firms and financial market infrastructure entities should use the temporary transitional power period to prepare for full compliance with their onshored regulatory obligations from April 01, 2022. BoE and PRA have identified certain key areas for which transitional relief is not available, including contractual recognition of bail-in rules, contractual stays, and Financial Services Compensation Scheme protection. Similarly, in certain key areas, FCA expects firms and other regulated persons to be preparing to comply with changed obligations ready for December 31, 2020. These areas include Securities Financing Transaction Regulation (SFTR) reporting obligations, use of credit ratings for regulatory purposes, securitization, and mortgage lending after the transition period against land in the European Economic Area.

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance, Securities, Brexit, Temporary Transitional Power, Transitional Direction, Securitization, PRA, BoE, FCA

    Related Articles
    News

    APRA Sets LAC for D-SIBs, Proposes to Enhance Crisis Preparedness

    APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).

    December 02, 2021 WebPage Regulatory News
    News

    EC to Review Macro-Prudential Rules while ESRB Assesses Policy Stance

    The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).

    December 01, 2021 WebPage Regulatory News
    News

    FSB Sets Out Good Practices for Crisis Management Groups

    The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.

    November 30, 2021 WebPage Regulatory News
    News

    APRA Penalizes Heritage Bank for Incorrect Reporting of Capital

    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.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Releases Annual Report 2021-2022

    The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Updates Timeline for Implementation of Certain Basel Rules

    Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.

    November 29, 2021 WebPage Regulatory News
    News

    EC Defers Adoption of Regulatory Standards for Disclosures Under SFDR

    EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.

    November 29, 2021 WebPage Regulatory News
    News

    FCA Releases MIFIDPRU Application Forms and Third Set of Rules on IFPR

    The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.

    November 29, 2021 WebPage Regulatory News
    News

    APRA Finalizes Capital Adequacy Standards for Banks

    The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.

    November 29, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Seek Comments on Access to Central Clearing and Portability

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.

    November 29, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7751