PRA published the policy statement PS17/19, which contains the final policy related to changes in the format and content of the Branch Return Form and reporting guidance. Following the update of PS17/19, PRA also updated the supervisory statement SS34/15 on guidelines for completing regulatory reports. SS34/15 sets out the basis on which firms should complete data items and returns required under PRA rules. Changes to the Branch Return and the reporting guidance will take effect from January 01, 2020 for the reporting of the "H1 2020 Return"—that is, for the period ending June 30, 2020. Firms will need to submit their first revised Return by no later than August 11, 2020.
PS17/19 is relevant to all existing and prospective PRA-supervised branches of deposit takers and PRA-designated investment firms that are not UK-headquartered firms (that is, international banks). PS17/19 also provides feedback to responses to the consultation paper CP8/19 on revision of the Branch Return and contains amendments to the Regulatory Reporting and Incoming Firms and Third Country Firms Parts of the PRA Rulebook (Appendix 1 to PS17/19). PRA received six responses to the consultation, including one from a trade association. The responses were generally supportive of most proposals; however, they proposed further improvements to the reporting guidance and amendments to the Return to give reporters greater clarity or reduce their need to amend systems to deliver the required data.
After considering the responses received, PRA implemented the Return as consulted within CP8/19, with two minor changes to the names of data points in the template, and amended the reporting guidance to provide further clarity. Additionally, PRA has decided not to proceed with the replacement of an Excel template with XBRL, although PRA will keep this decision under review. Firms will be able to submit the return in Excel format. Further details on the submission mechanism and validation rules will be provided by the end of 2019.
The policy set out in PS17/19 has been designed in the context of the current UK and EU regulatory framework. PRA has assessed that the policy will be affected if UK leaves EU with no implementation period in place. As outlined in CP8/19, this primarily affects changes required to ensure that the revised rules remain consistent with the PRA approach to regulation if UK leaves EU with no implementation period. PRA will ensure that the relevant version of the Branch Rules Instrument (as set out in Appendix 1 and Appendix 2 of CP8/19) will be implemented and published accordingly. As these changes relate to reporting, they should be read in conjunction with SS2/19 on PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after the withdrawal of UK from EU.
- PS17/19 and CP8/19
- PRA Rulebook (PDF)
- Guidance for Reporting
- Branch Return Form (XLSX)
- Guidance for Branch Return (PDF)
Effective Date: January 01, 2020
Keywords: Europe, UK, Banking, Branch Return Form, PRA Rulebook, Reporting, PS 17/19, SS 34/15, Foreign Banks, Finrep, PRA
Previous ArticleISDA CDM to be Deployed for UK Digital Regulatory Reporting Pilot
The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).
The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.