PRA published the policy statement PS21/19 that contains final rules amending certain parts of the PRA Rulebook, updated supervisory statements, and bank and insurer reporting templates and LOG files. The reporting related changes include corrections and clarifications to national specific templates (NSTs), internal model output templates, and the associated LOG files, along with the discontinuation of the FSA006 return, which provides PRA with Value at Risk (VaR) back-testing data for banks. PS12/19 also contains feedback to responses to the consultation paper CP13/19 that had proposed these changes. The changes fall under the Solvency II and Capital Requirements Regulation (CRR).
PS21/19 includes amendments related to the following:
- SS3/15 on the quality of capital instruments under Solvency II
- SS8/14 with information on subordinated guarantees and the quality of capital for insurers
- SS2/15 on the topic of own funds under Solvency II
- Regulatory Reporting Part of the PRA Rulebook
- SS34/15 on guidelines for completing regulatory reports
- Minor updates, corrections, and clarifications to national specific templates (NSTs), NST LOG files, internal model output templates and LOG files, and the related SS25/15 on regulatory reporting of internal model outputs. PRA amended NSTs including NS.07 and NS.08 (template and LOG file), NS.10 and NS.11 (LOG file), and Reporting Part of the PRA Rulebook. Amended internal model outputs include IM.00 and IM.03 (template and LOG file).
PRA received no responses in respect of Chapters 2 to 4 of CP13/19, and will therefore publish the policy as proposed. In addition, PRA has made further administrative corrections to SS8/14. PRA received one response to Chapter 5 of CP13/19. The response requested clarity on several templates and LOG files. After considering the response, PRA has made the certain changes related to NS.00, NS.07, NS.08, and NS.10. The implementation dates for all policy changes set out in PS21/19 are on publication of the final policy for Chapters 2 to 4 and on November 30, 2019 for Chapter 5. PRA wishes to clarify that deletion of the rule that required reporting of the FSA006 (as set out in Appendices 4 and 5 of PS21/19) takes effect immediately. Therefore, firms that would otherwise have been in scope of this requirement will not need to submit an FSA006 return for the period ending September 30.
The policy set out in Appendices 1 to 5 of PS21/19 has been designed in the context of the current UK and EU regulatory framework. PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework, including those arising once any new arrangements with EU take effect. If UK leaves EU with no implementation period in place, PRA has assessed that the policy would not need to be amended under the EU (Withdrawal) Act 2018. The policy set out in Appendices 6 to 14 of PS21/19 relates to reporting and 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.
Effective Date: September 30, 2019 (Chapters 2-4 of CP13/19 and Appendices 4 and 5 of PS21/19); November 30, 2019 (Chapter 5)
Keywords: Europe, UK, Banking, Insurance, Reporting, PRA Rulebook, PS 21/19, CP 13/19, Solvency II, CRR, National Specific Templates, FSA 006, Internal Models, PRA
Previous ArticlePRA Consults on Management of Prudential Risks on Asset Encumbrance
EIOPA submitted—to the European Parliament, the Council of the European Union, and EC—its 2020, fifth, and last annual report on long-term guarantee measures and measures on equity risk.
The BIS Innovation Hub Swiss Centre, SNB, and the financial infrastructure operator SIX announced the successful completion of a joint proof-of-concept (PoC) experiment as part of the Project Helvetia.
EBA published the final draft regulatory technical standards for calculation of own funds requirements for market risk, under the standardized and internal model approaches of the Fundamental Review of the Trading Book (FRTB) framework.
EIOPA published discussion paper on a methodology for the potential inclusion of climate change in the Solvency II (sometimes also written as SII) standard formula when calculating natural catastrophe underwriting risk.
EU published, in the Official Journal of the European Union, corrigenda to the Directive and the Regulation on the prudential requirements and supervision of investment firms.
MAS proposed amendments to certain regulations, notices, and guidelines arising from the Banking (Amendment) Act 2020.
PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.
RBNZ launched consultations on the scope of the Insurance Prudential Supervision Act (IPSA) 2010 and on the associated Insurance Solvency Standards.
SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.
EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.