PRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK. PS13/19 also provides feedback to responses to the Consultation Paper CP6/19 titled "Pillar 2 liquidity: Updates to the framework." The updated PRA110 template and reporting instructions will take effect from January 01, 2020. Additionally, PRA published version 5 of the PRA110 questions and answers (Q&As), which supersedes the version that was published on March 19, 2019. The new or updated Q&As appear in italics and under the PRA110 row/column to which they refer, where possible.
PRA received nine responses to CP6/19. Respondents did not express concerns on most of the proposals, but did raise some issues and requests for clarifications. Chapter 2 of PS13/19 sets out the PRA feedback to these response, along with the final decisions. Appendices to PS13/19 contain the final policy in the form of updates to the following:
- Regulatory Reporting Part of the PRA Rulebook (Appendix 1)
- Statement of Policy on Pillar 2 liquidity (Appendix 2)
- Supervisory Statement SS24/15 on the PRA approach to supervising liquidity and funding risks (Appendix 3)
- SS34/15 on guidelines for completing regulatory reports (Appendix 4)
- PRA110 template and reporting instructions (Appendices 5 and 6, respectively)
Annex A of the rule instrument amending the Regulatory Reporting Part of the PRA Rulebook (Appendix 1), the updated Statement of Policy (Appendix 2), the updated SS24/15 (Appendix 3), and the updated SS34/15 (Appendix 4) will take effect from July 01, 2019. The updated PRA110 template and reporting instructions (appendices 5 and 6) and Annex B of the rule instrument amending the Regulatory Reporting Part of the PRA Rulebook (Appendix 1) will take effect from January 01, 2020. PS13/19 is relevant to UK banks, building societies, PRA-designated investment firms, and non-EU European Economic Area banks, referred to collectively as "firms" in this Policy Statement.
The policy in PS13/19 has been designed in the context of the current UK and EU regulatory framework. PRA has assessed that the policy will be affected in the event that the UK leaves the EU with no implementation period in place. The final Statement of Policy, SS24/15, and SS34/15 attached to PS13/19 should be read in conjunction with SS1/19 titled "Non-binding PRA materials: The PRA’s approach after the UK’s withdrawal from the EU." The changes being made to the Regulatory Reporting Part of the Rulebook should be read in conjunction with SS2/19 titled "PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after the UK’s withdrawal from the EU."
- News Release, PS13/19, and Appendices
- PRA110 Q&A Version 5 (PDF)
- Reporting of PRA110
- SS1/19 on Non-Minding Materials (Post Brexit Approach)
- SS2/19 on Approach to Interpreting Reporting and Disclosure Requirements Post Brexit
Effective Dates: January 01, 2020; July 01, 2019
Keywords: Europe, UK, Banking, Liquidity Risk, Reporting, PRA 110, Pillar 2 Liquidity, PS 13/19, CP 6/19, Q&A, Brexit, PRA
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
BoE updated the known issues document for the statistical reporting Forms AS and FV.
FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.
SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.
BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.
OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.
EBA updated the report on the implementation of selected COVID-19 policies.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.