UK Authorities Publish Fourth Edition of Regulatory Initiatives Grid
UK authorities jointly published the fourth edition of Regulatory Initiatives Grid, which sets out the planned regulatory initiatives for the next 24 months. The Grid is a joint effort of the Bank of England or BoE (including the Prudential Regulation Authority or PRA), the Financial Conduct Authority (FCA), the Competition and Markets Authority, the Financial Reporting Council, the Payment Systems Regulator, the Information Commissioner’s Office, the Pensions Regulator, and Her Majesty’s (HM) Treasury (as an observer). The upcoming activities in the latest edition involve work on phase 6 of bilateral margin obligations, implementation of interest rate risk in the banking book (IRRBB) requirements, LIBOR transition, and environmental, social, and governance (ESG) initiatives. The Grid includes a number of important climate-related initiatives, including new additions around introducing the Sustainable Finance Disclosures regime, net zero transition plans, and work on ESG issues in capital markets.
This edition of the Grid contains 134 initiatives, a small increase over the 128 initiatives in the edition published in May 2021. This increase is driven by initiatives being launched in response to the strategic reviews of the government and to the emerging themes or issues in Financial Services (for example, climate, diversity, and inclusion), additional entries as plans for legislative changes to deliver the Chancellor’s vision for Financial Services solidify, and initiatives being delayed or postponed in response to COVID-19 pandemic. The Grid includes a broad range of initiatives that will impact the different sectors of the financial services industry. Some initiatives, though creating an operational burden now, will ultimately simplify and streamline regulation. This includes, the BoE and FCA’s work to transform data collection building on the Digital Regulatory Reporting workstream and the HM Treasury's proposal to streamline the FCA process for cancelling the authorization of inactive firms.
The Grid also includes initiatives focused on ensuring resolvability and operational resilience in the sector as well as initiatives geared toward enhanced competition and consumer protection. Timelines have changed for 13 initiatives, including a delay to the consultation on Basel 3.1. There is one new initiative: a planned BoE consultation on changes to the metric used to determine the other systemically important institution (O-SII) buffer rates from total assets to the UK leverage exposure measure. The Grid also sets out planned activities for a number of strategic reviews, including the Future Regulatory Framework Review, Wholesale Markets Review, the Payments Landscape Review, the Review of Solvency II, and the consultation on restoring trust in audit and corporate governance. The Grid also provides more information on expected key milestones and on the engagement of the financial services industry stakeholder with Forum members’ longer-term thinking on these significant developments.
Related Links
- BoE Notification
- FCA Notification
- Regulatory Initiative Grid (PDF)
- Regulatory Initiatives Grid Dashboard
- Regulatory Initiatives Grid Overview
Keywords: Europe, UK, Banking, Insurance, Securities, Basel, LIBOR, ESG, Climate Change Risk, Regulatory Initiatives Grid, Bilateral Margin Requirements, Regulatory Capital, 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.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
OSFI to Require Full Climate Risk Disclosures by 2027Related Articles
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
