HMT Issues Instrument on IFPR Changes; BoE Issues Reporting Updates
The Her Majesty's Treasury (HMT) published the draft statutory instrument titled "Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2022," which comes into force on August 17, 2022. This instrument includes certain amendments that follow the introduction of the Investment Firms Prudential Regime (IFPR) and Basel III standards on January 01, 2022. In addition, the Bank of England (BoE) announced that Data and Statistics Division is planning to move the collection of the Issuing and Paying Agents' Reporting Form (Form IPA) to the Bank of England Electronic Data Submission (BEEDS) portal.
As part of this transition, BoE will move the reporting format of Form IPA from a macro-enabled Excel template to XBRL. Migration has an intended completion date in 2023. More details, including an expected timeline, will be released via another Statistical Notices in due course. In the coming months, BoE will consult with the Issuing and Paying Agents to discuss the transition and possible changes to the collection. Additionally, BoE published a statistical notice confirming that the next User Acceptance Testing (UAT) window will take place from February 28, 2022 until March 18, 2022. The UAT will be open to all statistical reporters and software houses, to enable testing of Version 1.2.2 of the Bank of England Statistics taxonomy, following the corrective release. With regard to work on the Excel-based solution (alternative reporting method to XBRL), BoE announced that it has made the decision to publish a utility that will enable firms to report their Statistical data within an Excel workbook and convert this into an XBRL file. This XBRL file can then be uploaded via BEEDS. The utility will only be supported for the current version of the taxonomy and will not be maintained for future taxonomy updates. This is to aid statistical reporters with the transition to reporting in XBRL and notice will be given when the XBRL utility will be withdrawn. Further information on this will be made available in due course. BoE also updated the frequently asked questions (FAQs) on OSCA to BEEDS migration.
Coming back to the statutory instrument that followed the introduction of IFPR and Basel standards, which HMT published recently, this statutory instrument repeals the Banking Act 2009 (Exclusion of Investment Firms of a Specified Description) Order 2014 as it is redundant following the removal of FCA-regulated investment firms from the UK resolution regime. This instrument makes transitional provision in respect of risk retention requirements for certain securitizations, following the implementation of the IFPR. These requirements relate to the retention of a material net economic interest in a securitization by the originator, sponsor, or original lender to better align their interests with those of investors. This instrument makes amendments to ensure that short-term liabilities owed to both PRA- and FCA-regulated investment firms with permission to underwrite or deal on own account will continue to be exempt from bail-in. Bail-in involves shareholders of a failing institution being divested of their shares and creditors of the institution having their claims canceled or reduced to the extent necessary to restore the institution to financial viability. This instrument also addresses further deficiencies arising from withdrawal of the United Kingdom from the European Union.
Related Links
- Notification on Draft Statutory Instrument
- Draft Statutory Instrument
- Implementation of IFPR and Basel Standards
- Notice on Submission of Form IPA
- BoE Statistical Notice
- FAQs on Statistical Reporting (PDF)
Keywords: Europe, UK, Banking, Statistical Reporting, Statistical Notice, BEEDS, BEEDS Testing, Data Collection, XBRL, Form IPA, Investment Firms, CRR, IFPR, Basel, Regulatory Capital, Reporting, HM Treasury, BoE
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
