Featured Product

    PRA Fines Standard Chartered, Issues Rules on Material Risk-Takers

    December 17, 2021

    The Prudential Regulation Authority (PRA) imposed a financial penalty of GBP 46.55 million on the Standard Chartered Bank for failing to be open and cooperative with PRA and for failings in its regulatory reporting governance and controls in relation to a tailored PRA liquidity expectation. Additionally, PRA published the policy statement PS28/21, which finalizes changes to the Remuneration Part of the PRA Rulebook on the criteria for identifying material risk-takers and certain relevant definitions. PS28/21 is relevant to banks, building societies, and PRA-designated investment firms, including third country branches, but not to credit unions or authorized insurers.

    PS28/21 contains the final policy on the revocation of the PRA version of EU Regulation 604/2014 (Appendix 1) and the updated supervisory statement SS2/17 on remuneration (Appendix 3). PS28/21 also sets out the consequential changes to the Certification Part of the PRA Rulebook (Appendix 1) and the SS28/15 on strengthening individual accountability in banking (Appendix 4); these changes mirror the Remuneration Part changes. In addition, PS28/21 provides feedback to responses to the consultation paper CP18/21, which proposed changes to the applicable requirements on the identification of material risk-takers for the purposes of the remuneration regime. PRA received feedback from three entities and made two changes to the draft policy:

    • With respect to the consequential amendment to the Certification Part of the PRA Rulebook, PRA has deleted the reference to the Material Risk Takers Regulation in the Certification Part of the PRA Rulebook, and replaced it with the relevant, updated rules in the Remuneration Part.
    • PRA decided to make a minor drafting amendment to Rule 3.3A(2) of the Remuneration Part of the PRA Rulebook to further clarify that 0.3% threshold of employees within the firm who have been awarded the highest total remuneration should be calculated on an individual entity basis, and not calculated at the consolidated level.

    The changes to the Remuneration Part of the PRA Rulebook (Appendices 1, 2, and 3) will take effect on December 30, 2021 and are required to be implemented by firms from the first performance year, which starts after this date. The changes to the Certification Part of the PRA Rulebook will take effect on March 01, 2022 (Appendices 1 and 4).

     

    Related Links

    Effective Date: December 30, 2021/March 01, 2022

    Keywords: Europe, UK, Banking, Investment Firms, CRD IV, Basel, Remuneration, Operational Risk, Material Risk-Takers, Governance, PRA Rulebook, Standard Chartered, PRA

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News
    News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8596