The Prudential Regulatory Authority (PRA) issued an update on the submission of Remuneration Benchmarking Information Reports and High Earners Reports by the regulated firms in scope. To facilitate compliance with rules set out in Chapters 17 and 18 of the Remuneration Part of the PRA Rulebook, PRA has made available forms REP004 and REP005 on the data collection platform RegData, which is accessible via website of the Financial Conduct Authority. For third-country branches that passported into the UK, the reporting schedules for REP004 and REP005 to send data for the 2020 reporting period have been updated on RegData. PRA expects submission of these reports by September 30, 2021.
In addition, in a letter, Andrew Bailey, the Bank of England (BoE) Governor and the Prudential Regulation Committee (PRC) Chair, responded to Rishi Sunak, the Chancellor of the Exchequer, on the HM Treasury's recommendations for PRC, which were set out in a letter dated March 2021. In the letter, the Governor welcomed the recommendation that PRC should, where relevant and practical, have regard to the government’s commitment to achieve a net-zero economy by 2050 under the Climate Change Act 2008 (Order 2019) when considering how to advance its objectives and discharge its functions. For some time, PRA has recognized the risks posed by climate change and the transition to a net-zero economy to the safety and soundness of the firms it regulates. In response, PRA has instigated a number of initiatives that help ensure that the PRA-regulated firms develop capabilities to effectively identify, measure, manage, and, where needed, mitigate the financial risks they face from climate change. In addition to improving prudential resilience, these initiatives will help support the financial system and real economy through the transition to net-zero emissions. PRA has detailed its approach to climate change as part of the climate strategy in the BoE's recent climate-related financial disclosure.
- Statement on Remuneration Reports
- Letter from BoE Governor
- Recommendations for PRC, March 2021 (PDF)
Keywords: Europe, UK, Banking, Remuneration, High Earners, Climate Change Risk, ESG, RegData, Remuneration Benchmarking, Reporting, Systemic Risk, Net Zero Economy, PRC, PRA
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
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