PRA Revises Branch Return and Updates Guidance for Regulatory Reports
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.
Related Links
- 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
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