Featured Product

    PRA Proposes Simplified Obligations for Recovery Planning

    July 23, 2020

    PRA published the consultation paper CP10/20, with a proposal to allow certain firms to benefit from simplified obligations for recovery planning. This proposal is in light of the discretion PRA has under 4(1) of the Bank Recovery and Resolution Directive or BRRD (2014/59/EU) on whether to apply simplified obligations. The proposal involves changes to the supervisory statement SS9/17 on recovery planning and would reduce recovery planning expectations for certain firms. The comment period on CP10/20 closes on October 23, 2020. In the second half of 2020, PRA plans to publish the final policy statement and to notify the firms that are eligible for simplified obligations. Pending consideration of the responses to CP10/20, the amendments to SS9/17 would apply with immediate effect once the final policy statement is published.

    The proposals in CP10/20 relate to how PRA would perform the eligibility assessment process to determine which firms are eligible for simplified obligations in respect of recovery planning. The proposals also address the recovery planning expectations for firms deemed eligible for simplified obligations. For firms that are eligible for simplified obligations, the proposals seek to reduce the minimum number of scenarios considered in recovery planning to two and clarify that these firms are not expected to submit the information recovery plan information template referred to in SS9/17. CP10/20 is relevant to PRA-authorized UK banks, building societies, designated UK investment firms, and their qualifying parent undertakings to which the Recovery Plans Part of the PRA Rulebook applies.

    The proposals support the PRA approach to enhanced proportionality for smaller and non-systemic firms. PRA considers that the proposal introduces a more proportionate approach for recovery planning that would not cause firms to incur additional costs as a direct result of the proposals. The proposals set out in CP10/20 have been designed in the context of the withdrawal of UK from EU and entry into the transition period, during which time UK remains subject to the 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 proposals would not need to be amended under the EU (Withdrawal) Act 2018.

     

    Related Links

    Comment Due Date: October 23, 2020

    Keywords: Europe, UK, Banking, Securities, Recovery Planning, Basel, BRRD, CP10/20, SS9/17, Resolution Framework, Proportionality, PRA

    Featured Experts
    Related Articles
    News

    APRA Proposes to Increase Transparency of Banking Data

    APRA announced that it is resuming consultation on the confidentiality of data submitted to APRA by the authorized deposit-taking institutions.

    September 29, 2020 WebPage Regulatory News
    News

    EC Deems UK Framework for CCPs Temporarily Equivalent to EMIR Rules

    EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).

    September 28, 2020 WebPage Regulatory News
    News

    ESMA to Recognize Three Central Counterparties from UK

    ESMA announced that it will recognize three central counterparties (CCPs) established in the UK as third-country CCPs, from January 01, 2021.

    September 28, 2020 WebPage Regulatory News
    News

    PRA Publishes Version 02.04 of PRA110 Liquidity Metric Monitor Tool

    PRA published Version 02.04 of the PRA110 liquidity metric monitoring tool (PRA110 LMM tool).

    September 28, 2020 WebPage Regulatory News
    News

    LEI ROC Confirmed as Governance Body for OTC Derivatives Identifiers

    FSB confirmed the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier System (GLEIS) as the International Governance Body for the globally harmonized identifiers used to track over-the-counter (OTC) derivatives transactions, with effect from October 01, 2020.

    September 25, 2020 WebPage Regulatory News
    News

    FCA Consults on Regulation of International Firms in UK

    FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.

    September 25, 2020 WebPage Regulatory News
    News

    EBA Launches Transparency Exercise for Banks in EU

    EBA launched the seventh annual transparency exercise for banks in EU.

    September 25, 2020 WebPage Regulatory News
    News

    EBA Publishes Single Rulebook Q&A Updates in September 2020

    The EBA Single Rulebook question and answer (Q&A) tool updates for this month include answers to 32 questions.

    September 25, 2020 WebPage Regulatory News
    News

    MAS Amends Notices on NSFR and Single Counterparty Credit Exposures

    MAS published amendments to the Notice 652 on net stable funding ratio (NSFR), along with the related reporting template.

    September 24, 2020 WebPage Regulatory News
    News

    EC Publishes Action Plan for Capital Markets Union in EU

    EC published the action plan to enhance the Capital Markets Union in EU over the coming years.

    September 24, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5854