UK Regulators Announce Measures to Address Impact of COVID-19

Additionally, FCA has set out expectations for general insurance firms and provided information for consumers about what they should see from their insurance provider during the COVID-19 pandemic. FCA also provided clarifications in relation to suspension of products and policy renewals. The regulator emphasized the need for all general insurance firms to have plans in place to manage and mitigate the operational impact of COVID-19. FCA strongly requests all listed companies to observe a moratorium on the publication of preliminary financial statements for at least two weeks. FCA confirms it in talks with Financial Reporting Council (FRC) and PRA about a package of measures aimed to ensure that companies take the necessary time in these uncertain times to prepare appropriate disclosures and address current practical challenges; the three bodies (FCA, FRC, and PRA) intend to announce additional details shortly.

HM Treasury and BoE announced a COVID Corporate Financing Facility (CCFF) to provide additional help to firms to bridge through COVID-19 related disruption to their cash flows. The CCFF will provide funding to businesses by purchasing commercial paper of up to one-year maturity, issued by firms. By providing an alternative source of finance for a wide range of companies, the scheme will help to preserve the capacity of the banking system to lend to other companies, including small and medium-size enterprises, which rely on banks. FCA also published new guidance for mortgage lenders and administrators and small business lenders.

Related Links

• FCA Notification
• FCA Expectations for General Insurance Firms
• FCA Guidance for Mortgage Providers
• FCA Statement on Publication of Preliminary Financial Accounts
• BoE Press Release on CCFF

Keywords: Europe, UK, Banking, Insurance, Securities, COVID 19, CCFF, Climate Change Risk, ESG, FCA Handbook, Disclosures, General Insurance, PRA, BoE, FCA, HM Treasury