PRA Expects Data in Remuneration and High Earner Reports by September
The Prudential Regulatory Authority (PRA) issued an update on the submission of Remuneration Benchmarking Information Reports and High Earners Reports by the regulated firms in scope. To facilitate compliance with rules set out in Chapters 17 and 18 of the Remuneration Part of the PRA Rulebook, PRA has made available forms REP004 and REP005 on the data collection platform RegData, which is accessible via website of the Financial Conduct Authority. For third-country branches that passported into the UK, the reporting schedules for REP004 and REP005 to send data for the 2020 reporting period have been updated on RegData. PRA expects submission of these reports by September 30, 2021.
In addition, in a letter, Andrew Bailey, the Bank of England (BoE) Governor and the Prudential Regulation Committee (PRC) Chair, responded to Rishi Sunak, the Chancellor of the Exchequer, on the HM Treasury's recommendations for PRC, which were set out in a letter dated March 2021. In the letter, the Governor welcomed the recommendation that PRC should, where relevant and practical, have regard to the government’s commitment to achieve a net-zero economy by 2050 under the Climate Change Act 2008 (Order 2019) when considering how to advance its objectives and discharge its functions. For some time, PRA has recognized the risks posed by climate change and the transition to a net-zero economy to the safety and soundness of the firms it regulates. In response, PRA has instigated a number of initiatives that help ensure that the PRA-regulated firms develop capabilities to effectively identify, measure, manage, and, where needed, mitigate the financial risks they face from climate change. In addition to improving prudential resilience, these initiatives will help support the financial system and real economy through the transition to net-zero emissions. PRA has detailed its approach to climate change as part of the climate strategy in the BoE's recent climate-related financial disclosure.
Related Links
- Statement on Remuneration Reports
- Letter from BoE Governor
- Recommendations for PRC, March 2021 (PDF)
Keywords: Europe, UK, Banking, Remuneration, High Earners, Climate Change Risk, ESG, RegData, Remuneration Benchmarking, Reporting, Systemic Risk, Net Zero Economy, PRC, PRA
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