Featured Product

    PRA to Extend Temporary High Balance Coverage Amid COVID Crisis

    August 04, 2020

    PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance. PS19/20 amends the Depositor Protection Part of the PRA Rulebook (Appendix 1) and the Statement of Policy on the Deposit Guarantee Scheme (Appendix 2). PS19/20 also contains feedback to responses to the consultation paper CP6/20 on extending Temporary High Balance coverage. In CP6/20, PRA had proposed to increase the Temporary High Balance coverage period from six months to twelve months up until, and including, January 31, 2021. PRA highlights that responses to CP6/20 did not raise issues that would lead to any changes to the proposal. Coverage for Temporary High Balance will revert to six months, from February 01, 2021. The rule change and updated Statement of Policy will become effective on August 06, 2020.

    The Temporary High Balance rules of PRA extend FSCS coverage from GBP 85,000 to GBP 1 million for a period of six months from the point of deposit for certain qualifying life events, including deposits in preparation for the purchase and proceeds from the sale of residential properties, benefits payable on death, and life assurance payouts. The length of coverage for each Temporary High Balance would be determined by reference to the date on which a Temporary High Balance is credited to a depositor’s account, or the first date on which the Temporary High Balance becomes legally transferable to the depositor, whichever is later. The proposals were aimed to mitigate the consumer protection issues caused by the impact of COVID-19 on residential property and investment markets and on access to banking services, for some depositors. 

    PS19/20 is relevant to retail financial consumers that are, or may become, Temporary High Balance depositors. PS19/20 is also relevant to FSCS and to all authorized deposit takers. PS19/20 has been designed in the context of withdrawal of UK from EU and entry into the transition period, during which time UK remains subject to European law. PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework at the end of the transition period, including those arising once any new arrangements with EU take effect. PRA has assessed that the policy would not need to be amended under the EU (Withdrawal) Act 2018. 

     

    Related Links

    Effective Date: August 06, 2020

    Keywords: Europe, EU, Banking, COVID-19, FSCS, PRA Rulebook, Deposit Guarantee Scheme, Residential Property, Credit Risk, CP6/20, PS19/20, Temporary High Balance Coverage, PRA

    Featured Experts
    Related Articles
    News

    APRA Publishes Results of Climate Risk Self-Assessment Survey

    The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.

    August 04, 2022 WebPage Regulatory News
    News

    ACPR Publishes Updates Related to CRD IV and Covered Bonds

    The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).

    August 03, 2022 WebPage Regulatory News
    News

    BIS Paper Contributes to Debate on Regulating NBFIs and Big Techs

    The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.

    August 03, 2022 WebPage Regulatory News
    News

    EIOPA Publishes Guidance on Climate Change Scenarios in ORSA

    The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).

    August 02, 2022 WebPage Regulatory News
    News

    EBA and ECB Respond to Proposals on Sustainability Disclosures

    The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.

    August 01, 2022 WebPage Regulatory News
    News

    BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks

    A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.

    July 29, 2022 WebPage Regulatory News
    News

    EBA Publishes Multiple Regulatory Updates for Regulated Entities

    The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.

    July 29, 2022 WebPage Regulatory News
    News

    EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences

    The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.

    July 29, 2022 WebPage Regulatory News
    News

    EESC Opines on Proposals on CRR and European Single Access Point

    The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).

    July 29, 2022 WebPage Regulatory News
    News

    HM Treasury Publishes Multiple Regulatory Updates in July 2022

    HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.

    July 29, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8424