BoE and PRA published a policy statement (PS5/19) that contains final versions of policy materials on EU Exit Instruments, the related supervisory statements (SS1/19, SS2/19, and SS18/15), and a statement of policy (SoP) titled "Interpretation of EU Guidelines and Recommendations: BoE and PRA approach after the UK’s withdrawal from the EU"; these documents were published as near final on February 28, 2019. PS5/19 also includes supervisory statement on non-binding materials related to the financial market infrastructure supervision. Additionally, BoE has notified that the deadline for a firm to notify PRA that it wishes to enter the temporary permissions regime has passed. The period for notifications set out in the PRA Direction ended on April 11, 2019.
On April 11, 2019, the European Council decided, in agreement with UK, to further extend the period provided for in Article 50(3) of the Treaty on European Union until October 31, 2019. BoE and PRA have not changed the policy or significantly altered the text of the published materials since their publication as near-final. Section B of PS5/19 sets out the limited updates to these materials since they were published as near-final. BoE and PRA are not publishing final versions of their transitional directions and transitional guidance materials published as near-final in Section A of the February 2019 version of PS5/19. In light of the Brexit extension, BoE and PRA will consider whether to make any changes to these directions and guidance materials. BoE will publish further information on this in due course.
However, BoE and PRA have made minor changes to three EU Exit Instruments, SS18/15, and SoP, compared to the versions published as near-final. The changes are to clarify drafting and do not constitute policy changes. The minor changes that have been made to the final EU Exit instruments appended to PS5/19 can be described as follows:
- Clarification changes
- Consequential changes to reflect relevant underlying Statutory Instruments made or laid by HM Treasury or other government departments since publication of the February 2019 version of PS5/19
- Minor administrative and corrective changes to ensure accuracy of PRA Rulebook and the amended Binding Technical Standards (BTS)
All EU Exit Instruments appended to PS5/19 have been finalized and have the commencement date of exit day with one exception. The exception is that Annex BF of the PRA Rulebook: EU Exit Instrument 2019 (Appendix B.2) has a commencement date of July 01, 2019. PRA will provide further updates in relation to this Annex in due course.
Keywords: Europe, EU, UK, Banking, Insurance, Brexit, EU Withdrawal, Regulatory and Supervisory Approach, PS 5/19, PRA, BoE
Previous ArticleRBI Publishes Enabling Framework for Regulatory Sandbox
EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.
BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.