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 Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
BIS Bulletins Discuss DeFi Lending and Aspects of Crypto-Assets
The Bank for International Settlements (BIS) published bulletins on lending in decentralized finance (DeFi) system, on blockchain scalability and fragmentation of crypto, and on extractable value and market manipulation in crypto and decentralized finance.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
