Featured Product

    PRA Proposes Reporting and Rulebook Changes Under CRDIV and SolvencyII

    October 07, 2019

    PRA published an occasional consultation paper (CP25/19) that proposes minor amendments to the PRA Rulebook Parts, supervisory statements, statements of policy (SoPs), and the relevant templates. The proposed changes fall under the Solvency II and Capital Requirements Directive (CRD IV). Among other changes, CP25/19 consults on minor updates and corrections to certain Capital+ and ring-fenced body reporting templates, which is covered under Chapter 4 of CP25/19. The consultation period for Chapter 4 of CP25/19 closes on November 18, 2019 while the consultation period for the remaining chapters closes on December 09, 2019.

    The proposals in CP25/19 are included in the following five chapters:

    • In chapter 2, PRA sets out proposals to update SS20/15 on supervising building societies’ treasury and lending activities (Appendix 1) and Statement of Policy on the methodologies for setting Pillar 2 capital (Appendix 2) to remove references to the London Inter-Bank Offered Rate (LIBOR).
    • In chapter 3, PRA sets out proposals to update redundant references and make minor corrections to SS28/15 on strengthening individual accountability in banking (Appendix 3) and SS35/15 on strengthening individual accountability in insurance (Appendix 4).
    • In chapter 4, PRA sets out proposals to amend the Regulatory Reporting Part of the PRA Rulebook (Appendix 5), Capital+ reporting templates (PRA101 and PRA102) (Appendix 6), and ring-fenced body reporting templates (RFB003, RFB004, and RFB008) (Appendix 6).
    • In chapter 5, PRA sets out proposals in relation to retirement interest-only (RIO) mortgages as well as certain interest-only (IO) mortgages that are converted into RIO mortgages. The proposals would result in amendments to SS11/13 on the internal ratings based (IRB) approaches (Appendix 8) and SS10/13 on the standardized approach for credit risk (Appendix 9).

    Subject to the PRA consideration of responses to  CP25/19, the proposed implementation dates are the same date as publication of the final policy for Chapters 2 and 3 and the date as set out in Appendix 5 for Chapter 4. Furthermore, for Chapter 5, PRA proposes that firms should implement the proposed changes by December 31, 2020, to align with the proposed implementation date of the relevant EBA guidelines, as set out in CP21/19 on probability of default and loss given default estimation.

    The proposals have been designed in the context of the current UK and EU regulatory framework. PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework, including those arising once any new arrangements with EU take effect. Each chapter in CP25/19 sets out the PRA assessment of whether the proposals would need to be amended under the European Union (Withdrawal) Act 2018.

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance, Reporting, PRA Rulebook, Solvency II, CRD IV, Capital+, IRB Approach, Pillar 2, CP25/19, Credit Risk, Ring Fencing, PRA

    Featured Experts
    Related Articles
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    EIOPA Consults on Reporting and Disclosures Under Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7295