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.
- 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
Previous ArticleESRB Recommends Reciprocation of Macro-Prudential Measures in EU
Next ArticleEBA Report Reviews Funding Plans of Banks in EU
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.