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 ArticleBCBS Finalizes Certain Revisions to the Leverage Ratio Standard
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.