Featured Product

    PRA Amends the Large Exposures Framework and Reporting Rules for Banks

    June 28, 2018

    PRA published the Policy Statement PS14/18 that provides feedback to responses to the consultation paper CP20/17 on changes to the large exposures framework of PRA. It contains updates to the PRA rules on large exposures and regulatory reporting (Appendix 1), Supervisory Statement SS16/13 on large exposures (Appendix 2), and SS34/15 on guidelines for completing regulatory report (Appendix 3). PS14/18 also contains a simplified worked example of the application of the large exposures limits at the level of the UK consolidated group (Appendix 4). The changes to the rules and expectations will take effect from June 29, 2018.

    SS16/13 was updated following publication of PS14/18. Specifically, Paragraph 1.1 has been updated to include reference to the resolution exemption. Paragraphs 2.4, 2.5A, 2.11, 3.2A, 3.4, 3.5, 3.8, 3.8A, 3.9 have been updated to provide additional guidance to firms on Core UK group (CUG) and non-core large exposures group (NCLEG) permissions. Section 6 has been added to set out the PRA expectations on the resolution exemption. PS14/18 is relevant to PRA-authorized UK banks, building societies, PRA-designated UK investment firms and their qualifying parent undertakings, which for this purpose comprise financial holding companies and mixed financial holding companies, as well as credit institutions, investment firms, and financial institutions that are subsidiaries of these firms, regardless of their location. SS34/15 on guidelines for completing regulatory reports was updated to remove the requirement to submit data item FSA018.

    PRA had received five responses to CP20/17. Respondents supported the proposals to provide additional guidance in SS16/13. Most respondents agreed with the proposal to change the NCLEG limit for firms with both a CUG and an NCLEG permission and the exemption of individual NCLEG exposures at the UK consolidated level. Some respondents sought clarity on certain aspects of these proposals. Respondents also welcomed the proposal to exempt internal minimum requirements for own funds and eligible liabilities (internal MREL) exposures from large exposure limits to facilitate the orderly resolution of banking groups. However, they questioned the process, scope, and the timing of implementation for this exemption.

     

    Related Links

    Effective Date: June 29, 2018

    Keywords: Europe, UK, Banking, Large Exposures, PS14/18, SS34/15, SS16/13, Reporting, PRA

    Featured Experts
    Related Articles
    News

    APRA Announces Deferral of Capital Reform Implementation

    APRA announced that it is deferring the scheduled implementation of Basel III reforms in Australia by one year.

    March 30, 2020 WebPage Regulatory News
    News

    IFRS Publishes Statement on Its Work During the COVID-19 Crisis

    IFRS, in its statement, emphasized that it shares global concerns about the impact of COVID–19 and is supporting its stakeholders by reconsidering timelines of its meetings and publications, providing information on the application of IFRS 9 on financial instruments, and offering calendar updates on ongoing activities.

    March 27, 2020 WebPage Regulatory News
    News

    US Agencies Announce Changes to SA-CCR and CECL Rules Due to COVID-19

    In light of the recent disruptions in economic conditions due to the COVID-19 outbreak, US Agencies (FDIC, FED, and OCC) announced two actions to allow banking organizations to continue lending to households and businesses.

    March 27, 2020 WebPage Regulatory News
    News

    IAIS Adjusts Work Program to Address Impact of COVID-19 on Insurers

    Considering the impact of COVID-19 outbreak, IAIS announced initial adjustments to its work program to provide operational relief to its member supervisors, insurers, and other stakeholders.

    March 27, 2020 WebPage Regulatory News
    News

    OSFI Announces Regulatory Adjustments to Support COVID-19 Efforts

    OSFI published three targeted industry letters that announce a series of regulatory adjustments to support the financial and operational resilience of federally regulated banks, insurers, and private pension plans in the light of COVID-19.

    March 27, 2020 WebPage Regulatory News
    News

    UK Regulators Announce Measures to Address Impact of COVID-19

    UK Regulatory Authorities published statements and guidance addressed to financial entities on dealing with the impact of the coronavirus (COVID-19) outbreak.

    March 26, 2020 WebPage Regulatory News
    News

    ISDA and Industry Request Delay in Timeline for Initial Margin Rules

    Considering the challenges posed by the COVID-19 pandemic, ISDA submitted a letter on behalf of 21 industry associations and their members requesting BCBS, IOSCO, and global regulators to suspend the current timeline for the initial margin phase-in.

    March 26, 2020 WebPage Regulatory News
    News

    FCA, FRC, and PRA Issue Joint Statement to Address Impact of COVID-19

    In response to the COVID-19 outbreak, FCA, the Financial Reporting Council (FRC), and PRA have announced a series of actions and made statements to support the continued functioning of capital markets in the UK.

    March 26, 2020 WebPage Regulatory News
    News

    EC Rule Corrects Regulation Supplementing Solvency II Directive

    EC published the EU Delegated Regulation 2020/442, which corrects the EU Delegated Regulation 2015/35 that supplements Solvency II Directive (2009/138/EC).

    March 26, 2020 WebPage Regulatory News
    News

    FED and FFIEC Offer Reporting Relief to Institutions Due to COVID-19

    FED and FFIEC announced regulatory reporting relief to financial institutions due to disruptions caused by the COVID-19.

    March 26, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4900