PRA Proposes Reporting and Rulebook Changes Under CRDIV and SolvencyII
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
- Notification
- CP25/19 (PDF)
- PRA101/PRA102 Draft Template (XLSX)
- RFB003 Draft Template (XLSX)
- RFB004 Draft Template (XLSX)
- RFB008 Draft Template (XLSX)
Comment Due Date: November 18, 2019 (Chapter 4); December 09, 2019 (Remaining Chapters)
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
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.
Adam Koursaris
Asset and liability management expert; capable modeler; risk and capital specialist
Previous Article
IMF Reports Assess Financial System Stability in ThailandRelated Articles
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
IOSCO Welcomes Work on Sustainability-Related Corporate Reporting
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
BoE Allows One-Day Delay in Statistical Data Submissions by Banks
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
ACPR Amends Reporting Module Timelines Under EBA Framework 3.2
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
APRA to Modernize Prudential Architecture, Reduces Liquidity Facility
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
