PRA is proposing (CP22/18) to delay termination of the existing "daily flows" and "enhanced mismatch" liquidity reports (FSA047 and FSA048) by six months. The purpose of the proposed change is to mitigate risks to the supervision of liquidity in the initial period, following the introduction of the new PRA110 report on July 01, 2019. This consultation closes on November 12, 2018 and is relevant to banks, building societies, and PRA-designated investment firms.
PRA does not propose changing the implementation date of the PRA110. These proposals would be delivered by amendments to the Reporting Part of the PRA Rulebook (Appendices 1 and 2) and an update to Supervisory Statement SS34/15 titled "Guidelines for completing regulatory reports" (Appendix 3). The following changes have been proposed to the PRA reporting requirements to:
- Delay terminating the FSA047 and FSA048 for six months (that is, to January 01, 2020)
- Reduce the reporting frequency of the FSA047 and FSA048 reports to align with the PRA110 report, in cases where it would otherwise differ from July 01, 2019
Furthermore, PRA confirms that it is using its new individual risk methodologies as set out in Statement of Policy titled "Pillar 2 liquidity" in liquidity reviews. They are being applied at the current glide path factor. PRA has previously stated its intention to set out proposals on the overall calibration of the liquidity framework in 2018. However, PRA has taken the decision to postpone finalization of its proposals to conduct further analysis on the appropriate level of liquidity guidance. This includes the potential for some recognition in the Pillar 2 liquidity framework of the ability to draw on BoE liquidity facilities, where firms have access arrangements and appropriate collateral in place.
Comment Due Date: November 12, 2018
Keywords: Europe, UK, Banking, Reporting, Pillar 2 Liquidity, CP22/18, FSA047, FSA048, PRA
Previous ArticleEIOPA Publishes Results of the 2018 Insurance Stress Test
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
HM Treasury notified that, after considering all responses, the government intends to bring forward further legislation, when the Parliamentary time allows, to address issues identified in the consultation on supporting the wind-down of critical benchmarks.
EIOPA launched the 2021 stress test for the insurance sector in EU.
UK authorities jointly published the third edition of Regulatory Initiatives Grid setting out the planned regulatory initiatives for the next 24 months.
EC is requesting feedback on the proposed Commission Delegated Regulation on the content, methodology, and presentation of information that large financial and non-financial undertakings should disclose about their environmentally sustainable economic activities under the Taxonomy Regulation.
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.