Featured Product

    PRA Updates Pre-Issuance Notification Regime for Capital Instruments

    March 10, 2020

    PRA published the policy statement PS5/20, which contains amendments to the Pre-Issuance Notification, or PIN, regime for PRA-authorized Capital Requirements Regulation (CRR) firms. PS5/20 also provides feedback to responses to the consultation paper CP20/19, which proposed amendments to the Pre-Issuance Notification regime. The proposals were intended to reflect the adoption of amendments to Part Two of the CRR via CRR2 and to make improvements identified through the PRA assessment on the quality of capital instruments. The changes in PS5/20 take effect from April 01, 2020.

    PS5/20 contains the final policy on amendments to the Definition of Capital Part of the PRA Rulebook, an updated supervisory statement (SS7/13) on definition of capital (CRR firms), an updated Pre-Issuance Notification form, an updated common equity tier 1 (CET1) compliance template, and a summary table showing the final clarification of "sufficiently in advance" notification and "substantially the same" terms (as defined in updated SS7/13). The policy set out in PS5/20 has 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 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 at the end of the transition period. 

    The Pre-Issuance Notification rules are designed to enhance and maintain the quality of capital resources of firms by providing PRA with the opportunity to comment on the terms and conditions of the proposed capital instruments prior to the issuance of, or amendments to, such instruments. In CP20/19, PRA proposed a number of changes to the Pre-Issuance Notification regime for CRR firms. PRA intended the proposed improvements to make the Pre-Issuance Notification regime more risk-sensitive and proportionate and to allow firms greater flexibility in issuing or amending capital instruments. PRA has received three responses to CP20/19, with respondents being generally supportive of the proposals and making a number of observations and requests for clarification. 


    Related Links

    Effective Date: April 01, 2020

    Keywords: Europe, UK, Banking, CRR, CRD IV, CRR2, CET1, Regulatory Capital, PIN Regime, PS5/20, CP20/19, SS7/13, Basel III, PRA

    Featured Experts
    Related Articles

    APRA Publishes Results of Climate Risk Self-Assessment Survey

    The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.

    August 04, 2022 WebPage Regulatory News

    ACPR Publishes Updates Related to CRD IV and Covered Bonds

    The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).

    August 03, 2022 WebPage Regulatory News

    EIOPA Publishes Guidance on Climate Change Scenarios in ORSA

    The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).

    August 02, 2022 WebPage Regulatory News

    EBA and ECB Respond to Proposals on Sustainability Disclosures

    The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.

    August 01, 2022 WebPage Regulatory News

    BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks

    A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.

    July 29, 2022 WebPage Regulatory News

    EBA Publishes Multiple Regulatory Updates for Regulated Entities

    The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.

    July 29, 2022 WebPage Regulatory News

    EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences

    The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.

    July 29, 2022 WebPage Regulatory News

    EESC Opines on Proposals on CRR and European Single Access Point

    The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).

    July 29, 2022 WebPage Regulatory News

    HM Treasury Publishes Multiple Regulatory Updates in July 2022

    HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.

    July 29, 2022 WebPage Regulatory News

    APRA Consults on Prudential Standard for Operational Risk

    The Australian Prudential Regulation Authority (APRA) is seeking comments, until October 21, 2022, on the introduction of CPS 230, which is the new cross-industry prudential standard on operational risk management.

    July 28, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8422