FCA and PRA hosted second meeting of the Climate Financial Risk Forum (CFRF) in July 2019. At the meeting, the working group chairs presented the draft plans and progress to date, with CFRF members noting the importance of considering how outputs draw on international best practice; how to ensure that outputs are suitable for firms of different types, sizes, and complexity; and how to ensure coordination between the working groups. The meeting also discussed the form of the outputs, the timeline for publishing these outputs, and ways to get wider industry input into the process. It was agreed that the CFRF will aim to publish these outputs in early 2020.
The next CFRF meeting will take place in the fourth quarter of 2019. The objective of CFRF is to build capacity and share best practices across financial regulators and industry to advance financial sector responses to the financial risks from climate change. It brings together senior representatives from across the financial sector, including banks, insurers, and asset managers. The forum is chaired by Sarah Breeden (Executive Director of International Banks Supervision, PRA) and Christopher Woolard (Executive Director of Strategy and Competition, FCA). Since its inception in March 2019, CFRF has set up four technical working groups on disclosure, scenario analysis, risk management, and innovation. Each working group is chaired by a CFRF member and supported by an external secretariat. Each working group has planned the approach they propose to take and the outputs they will deliver in terms of practical guidance and best-practice material.
Related Link: Press Release
Keywords: Europe, UK, Banking, Insurance, Securities, Climate Change Risks, Climate Financial Risk Forum, CFRF, ESG, FCA, PRA
Previous ArticleESMA Updates Q&A on European Benchmarks Regulation
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.