Featured Product

    BoE on Application of Transitional Power to CRD5 and BRRD2 Legislation

    November 13, 2020

    BoE published a statement on the application of the temporary transitional power to CRD5 and BRRD2 derived legislation. The statement confirms that no additional exceptions from the application of the transitional power are expected to be required in relation to onshoring changes to new rules and legislation implementing the fifth Capital Requirements Directive (CRD5) and the revised Banking Resolution and Recovery Directive (BRRD2). BoE has added guidance documents that support the draft transitional directions published as part of the consultation paper CP13/20 on changes before the end of the transition period. The documents provide guidance on transitional direction in relation to the PRA Rulebook, the Capital Requirements Regulation, the Solvency II regime, the Securitization Regulation, and the BRRD.

    BoE and PRA have not identified the necessity of any further exceptions to its transitional directions as a result of onshoring amendments to the CRD5 and BRRD2 derived legislation. This means that transitional relief will apply to a small number of “relevant obligations” that are changed by onshoring amendments made to the CRD5 and BRRD2 derived legislation at the end of the transition period. The temporary transitional power, however, cannot apply to changes being made to the primary or secondary legislation to implement a Directive in domestic law. These changes are not onshoring amendments made under section 8 of the Withdrawal Act to which the temporary transitional power can apply. Firms must, therefore, ensure that they are ready to comply with changes to domestic law and PRA rules, which are being made to implement the CRD5 and the BRRD2 to the extent that these are relevant to firms.

    In relation to the BRRD2, HM Treasury is making changes to primary legislation that will affect the existing PRA regime for Contractual Recognition of Bail-in and Stay in Resolution rules. Most of the elements of the Statutory Instrument that are relevant to Contractual Recognition of Bail-in and Stay in Resolution rules will come into force on December 28, 2020 but will subsequently cease to have effect from the end of the transition period. As a result of this process, the temporary transitional power will be of limited relevance to BRRD2. PRA has previously communicated that it does not intend to grant transitional relief in respect of Contractual Recognition of Bail-in and Stay in Resolution rules, except in relation to phase two liabilities as referenced in relation to Contractual Recognition of Bail-in rules. PRA intends that this policy outcome will remain the same irrespective of any changes to PRA rules made due to BRRD2.

     

    Related Links

    Keywords: Europe, UK, Banking, Insurance, CRD5, BRRD2, Brexit Transition, Temporary Transitional Power, CRR, PRA Rulebook, Solvency II, Contractual Recognition, Bail-In, Resolution Framework, PRA, BoE

    Featured Experts
    Related Articles
    News

    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.

    January 04, 2023 WebPage Regulatory News
    News

    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.

    January 01, 2023 WebPage Regulatory News
    News

    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.

    December 30, 2022 WebPage Regulatory News
    News

    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.

    December 29, 2022 WebPage Regulatory News
    News

    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.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    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.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697