FCA and PRA Host Fourth Meeting of Climate Financial Risk Forum
FCA and PRA hosted the fourth meeting of the Climate Financial Risk Forum (CFRF) in July 2020. The Forum discussed how to publicize and promote the use of CFRF guide, which was published on June 29, 2020, by the financial services industry. The next CFRF meeting will take place in the fourth quarter of 2020. At the next meeting, the Forum will work to reach an agreement on the workplans and approaches and will discuss the possible next steps to support COP26, which is the international climate summit that the UK will host in November 2021.
CFRF agreed that, to maintain momentum in its early years, all current members would continue into the second year and that membership would be widened to include a small number of asset owners, along with other regulators that would be invited to observe. CFRF then went on to discuss the strategy for the second year of work. CFRF agreed that the four existing working groups would continue with the current chairs and secretariats. These working groups address the topics of: risk management, scenario analysis, disclosures, and innovation. Once the workplans are agreed between the regulators and the working group chairs, the working group membership will be refreshed to ensure that there is an appropriate variety of skills and experiences around the table; this is likely to include a mix of existing and new members. There was broad agreement that each working group would have a two-fold focus. One of these areas of focus is to undertake a thematic piece of work on metrics, data, and methodologies while the second area of focus is to build on the CFRF guide, by progressing and refining the recommendations, particularly highlighting how firms can effectively implement these approaches.
Related Link: Meeting Update
Keywords: Europe, UK, Banking, Insurance, Securities, CFRF, Climate Change Risk, Climate Financial Risk Forum, ESG, Disclosures, Stress Testing, COP26, FCA, PRA
Featured Experts
Emil Lopez
Credit risk modeling advisor; IFRS 9 researcher; data quality and risk reporting manager
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Nihil Patel
Data scientist; SaaS product designer; credit portfolio analyst and product strategist; portfolio modeler; correlation researcher
Related Articles
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.
