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

    HKMA on Fintech Adoption and Innovation by Banks in Hong Kong

    HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.

    May 20, 2020 WebPage Regulatory News
    News

    BIS on Impact of Increasing Use of Cloud Technology on Cyber Risk

    BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.

    May 20, 2020 WebPage Regulatory News
    News

    ECB Consults on Guide for Managing Climate and Environmental Risks

    ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.

    May 20, 2020 WebPage Regulatory News
    News

    ECB Issues Opinion on Revisions to CRR in Response to COVID Crisis

    ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.

    May 20, 2020 WebPage Regulatory News
    News

    EBA Assesses Interlinkages Between Recovery and Resolution Planning

    EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).

    May 20, 2020 WebPage Regulatory News
    News

    SRB Publishes Final MREL Policy Under the Banking Package

    SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.

    May 20, 2020 WebPage Regulatory News
    News

    EIOPA Risk Assessment Shows Increase in Credit and Market Risks

    EIOPA published its risk dashboard based on Solvency II data from the fourth quarter of 2019.

    May 18, 2020 WebPage Regulatory News
    News

    MNB Issues Statement on Loan Payments After Moratorium Expires

    MNB published a statement on loan payments post the announced moratorium, in addition to a set of new questions and answers (Q&A) on supervisory measures and requirements announced amid COVID-19 pandemic.

    May 18, 2020 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for May 2020

    EBA updated the Single Rulebook question and answer (Q&A) tool for banks.

    May 15, 2020 WebPage Regulatory News
    News

    US Agencies Temporarily Amend Supplementary Leverage Ratio Calculation

    US Agencies (FDIC, FED, and OCC) published an interim final rule that temporarily revises the supplementary leverage ratio calculation for depository institutions.

    May 15, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5195