Featured Product

    PRA Letter Sets Out Expectations for Reliability of Regulatory Returns

    October 31, 2019

    PRA published a letter that sets out expectations from firms on the actions they need to take to ensure the integrity and reliability of regulatory returns. This letter from the Executive Directors Sarah Bredeen and David Bailey is addressed to the Chief Executive Officers (CEOs) of PRA-regulated banks and building societies. The letter notes that an Independent Review of the Prudential Supervision by The Co-operative Bank Plc has recommended that PRA should consider introducing more formal third-party reviews of key prudential information supplied by the PRA-supervised firms through their regulatory data returns.

    Examples of errors in regulatory reporting (both public and those identified in the business as usual supervision) have further underlined the need for appropriate investment in both the integrity of data and the ability to process them accurately. If asked, PRA expects firms to be able to respond promptly to a request from PRA to: 

    • Demonstrate how the design and operation of the governance, controls, and other processes deliver regulatory reporting of appropriate quality
    • Provide details of the key interpretations and judgments made related to regulatory returns and the governance processes used to validate these
    • Provide details of any material regulatory reporting errors identified, along with an explanation of the actions taken to remediate these issues

    The actions taken to ensure the integrity of returns could, for example, include regular, comprehensive reviews of the effectiveness of the governance, controls, and other processes around regulatory returns to ensure that they are fit for purpose and to perform deep dives that look at the accuracy of the returns. 

    As part of the ongoing focus on the integrity of regulatory reporting, PRA intends to commission reports from skilled persons. This work will focus on the Common Reporting framework and will also incorporate other related returns, including newly introduced returns such as the PRA110 Cashflow mismatch template. The reviews may involve a reasonable assurance opinion on whether the return reviewed has been properly prepared; a review of the relevant governance, controls, and other processes; and the gathering of information that will enable PRA to review the key interpretations applied in preparing the return. PRA expects the main focus of these reviews to be on the larger firms. As part of the reviews, firms should expect PRA to consider the full range of supervisory responses wherever concerns exist.

     

    Related Link: Letter

     

    Keywords: Europe, UK, Banking, Reporting, PRA110, Governance, Controls, COREP, PRA

    Featured Experts
    Related Articles
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    News

    SEC Extends Comment Period on Climate Risk Disclosures

    The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.

    May 09, 2022 WebPage Regulatory News
    News

    APRA Reduces Committed Liquidity Facility, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.

    May 09, 2022 WebPage Regulatory News
    News

    EIOPA Responds to Stakeholder Views on Blockchain in Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.

    May 06, 2022 WebPage Regulatory News
    News

    HKMA Announces Decisions on CCyB and Loan Guarantee Scheme

    The Hong Kong Monetary Authority (HKMA) announced that the applicable jurisdictional countercyclical capital buffer (CCyB) ratio for Hong Kong remains unchanged at 1.0%

    May 06, 2022 WebPage Regulatory News
    News

    CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks

    The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.

    May 06, 2022 WebPage Regulatory News
    News

    PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down

    The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.

    May 06, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8168