PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A. By mid-December, PRA intends to publish a policy statement that will summarize the responses to the consultations related to CRD5 and explain the policy approach of PRA, including any further supervisory processes required for implementation. CRD5 will come into effect on December 28, 2020, with most of the requirements, including those related to Pillar 2A, applying from December 29, 2020.
In July and October 2020, PRA had published two consultation papers (CP12/20 and CP17/20) to propose changes to the PRA rules, supervisory statements, and statements of policy to implement elements of CRD5. The consultations closed on September 30, 2020 and November 17, 2020 respectively. PRA is considering whether amendments to the proposed approach are warranted in light of the responses received. By mid-December, PRA intends to publish a policy statement that will summarize the consultation responses and explain the policy approach of PRA, including any further supervisory processes required for implementation. The policy statement will also include the approach of PRA to revisions to the definition of capital for Pillar 2A, on which the PRA has consulted in CP17/20. The UK approach to implementing CRD5 will be implemented through the Financial Holding Companies (Approval etc.), the Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020, and amendments to certain PRA rules and expectations.
Keywords: Europe, UK, Banking, CRD5, Basel, Pillar 2A, CP17/20, CP12/20, Transposition of CRD5, Brexit Transition, PRA
Next ArticleSRB Sets Out Work Program for 2021-2023
The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.
The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).
The working groups of the Climate Financial Risk Forum (CFRF) published a second round of guides (or Session 2 guides), written by the industry for the industry, to help financial firms manage climate-related financial risks.
The Prudential Regulation Authority (PRA) published the final Policy Statement PS24/21 that contains the new Non-Performing Exposures Securitization Part of the PRA Rulebook and an updated Supervisory Statement SS10/18 on the general requirements and capital framework with respect to securitizations.
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
The European Council adopted conclusions inviting the European Union (EU) and the member states to further develop the cybersecurity crisis management framework.
The European Commission (EC) adopted the work program for 2022.