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. FCA announced extending the closing date for responses to its open consultation papers and calls for input until October 01, 2020 and rescheduling most other planned work. The delayed consultation papers include consultation (CP19/32) on new requirements to strengthen operational resilience in the financial services sector and consultation (CP20/3) on proposals to improve listed issuers' financial disclosures related to climate change. FCA also decided to delay certain publications that are due before the end of June, including joint the PRA-FCA work with the Climate Financial Risk Forum (CFRF) to develop industry led guidance on how to integrate climate-related risks into business decision-making across the financial services sector.
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
Featured Experts
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
ISDA Publishes Factsheet on Benchmark Fallbacks for IBORRelated Articles
FCA Consults on Regulation of International Firms in UK
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS Amends Notice on Capital Adequacy Requirements of Banks
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA to Begin to Move Firms to New Data Collection Platform RegData
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
APRA Reviews Repayment Deferral Plans, Identifies Best Practices
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs Assess Risks to Financial Sector After COVID-19 Outbreak
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE Confirms Withdrawal of COVID Corporate Financing Facility
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.
ESAs Launch Survey on Templates for Product Disclosures Under SFDR
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB Proposes Integrated Reporting Framework to Reduce Burden for Banks
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
EC Deems UK Framework for CCPs Temporarily Equivalent to EMIR Rules
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
EBA to Phase Out Guidelines on Loan Repayment Moratoria
EBA has decided to phase out the guidelines on legislative and non-legislative moratoria of loan repayments, in accordance with the earlier specified end of September deadline.
