UK Authorities Publish Third Edition of Regulatory Initiatives Grid
UK authorities jointly published the third edition of Regulatory Initiatives Grid setting out the planned regulatory initiatives for the next 24 months. The Grid is a joint effort of BoE, FCA, the Competition and Markets Authority, the Financial Reporting Council, the Payment Systems Regulator, the Information Commissioner’s Office, the Pensions Regulator, and HM Treasury (as an observer). The key upcoming initiatives in the latest iteration include work on implementation of open banking, phases 5 and 6 of bilateral margin obligations, implementation of interest rate risk in the banking book (IRRBB) requirements, LIBOR transition, implementation of Basel 3.1, and environmental, social, and governance (ESG) initiatives.
This edition of the Grid contains 128 initiatives, an increase over the 111 initiatives that were set out in the second edition, which was published in September 2020 and followed the publication of the first edition in May 2020. This edition includes initiatives from the Financial Reporting Council and a number of new initiatives that regulators are pushing forward in the areas of shared priority across public and private sectors (for example, eight new environmental, social, and governance or ESG initiatives). In addition, given the number of initiatives paused or delayed in response to the COVID-19 pandemic, fewer initiatives have fallen out of the Grid (by virtue of completion) than might typically be expected. This Grid is published at least twice a year to help manage the operational impact, on firms, of implementing such initiatives.
The Grid includes a broad range of initiatives which will impact the different sectors of the financial services industry in different ways. Some initiatives are actively aimed at reducing regulatory burden and/or simplifying regulation; these include the BoE and FCA’s work to transform data collection building on Digital Regulatory Reporting and the HM Treasury's proposal to streamline the FCA process for cancelling the authorization of inactive firms. The Grid also covers long-running, critically important initiatives that will require significant resources from firms to implement the necessary changes; these include the phase out of LIBOR, UK implementation of Basel 3.1, and strengthening operational resilience across a number of sectors. The Grid also sets out planned activities for a number of strategic reviews, including the Future Regulatory Framework Review, the Review of the UK Funds Regime, the Payments Landscape Review, the Review of Solvency II, and the consultation on restoring trust in audit and corporate governance. As the Grid shows, financial services industry stakeholders will have the opportunity to engage with Forum members’ longer-term thinking on significant developments within their sectors.
Related Links
- BoE Notification
- FCA Notification
- Regulatory Initiative Grid (PDF)
- Regulatory Initiatives Grid Dashboard
Keywords: Europe, UK, Banking, Insurance, Securities, Basel, LIBOR, ESG, Climate Change Risk, Regulatory Initiatives GRID, Bilateral Margin Requirements, HM Treasury, PRA, BoE, FCA
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.
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous Article
FSI Paper Examines Effectiveness of Bank Resolution FrameworksRelated 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.