Featured Product

    PRA Letter Sets Out Expectations for Reliability of Regulatory Returns

    October 31, 2019

    PRA published a letter that sets out expectations from firms on the actions they need to take to ensure the integrity and reliability of regulatory returns. This letter from the Executive Directors Sarah Bredeen and David Bailey is addressed to the Chief Executive Officers (CEOs) of PRA-regulated banks and building societies. The letter notes that an Independent Review of the Prudential Supervision by The Co-operative Bank Plc has recommended that PRA should consider introducing more formal third-party reviews of key prudential information supplied by the PRA-supervised firms through their regulatory data returns.

    Examples of errors in regulatory reporting (both public and those identified in the business as usual supervision) have further underlined the need for appropriate investment in both the integrity of data and the ability to process them accurately. If asked, PRA expects firms to be able to respond promptly to a request from PRA to: 

    • Demonstrate how the design and operation of the governance, controls, and other processes deliver regulatory reporting of appropriate quality
    • Provide details of the key interpretations and judgments made related to regulatory returns and the governance processes used to validate these
    • Provide details of any material regulatory reporting errors identified, along with an explanation of the actions taken to remediate these issues

    The actions taken to ensure the integrity of returns could, for example, include regular, comprehensive reviews of the effectiveness of the governance, controls, and other processes around regulatory returns to ensure that they are fit for purpose and to perform deep dives that look at the accuracy of the returns. 

    As part of the ongoing focus on the integrity of regulatory reporting, PRA intends to commission reports from skilled persons. This work will focus on the Common Reporting framework and will also incorporate other related returns, including newly introduced returns such as the PRA110 Cashflow mismatch template. The reviews may involve a reasonable assurance opinion on whether the return reviewed has been properly prepared; a review of the relevant governance, controls, and other processes; and the gathering of information that will enable PRA to review the key interpretations applied in preparing the return. PRA expects the main focus of these reviews to be on the larger firms. As part of the reviews, firms should expect PRA to consider the full range of supervisory responses wherever concerns exist.

     

    Related Link: Letter

     

    Keywords: Europe, UK, Banking, Reporting, PRA110, Governance, Controls, COREP, PRA

    Featured Experts
    Related Articles
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    News

    SEC Extends Comment Period on Climate Risk Disclosures

    The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.

    May 09, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8187