PRA Publishes Waiver by Consent of Continuity of Access Rules
PRA published a new waiver by consent to waive the Continuity of Access requirements contained in the Depositor Protection Part of the PRA Rulebook (DPP). The current waiver by consent (and individual waivers) for the Continuity of Access rules expires on December 01, 2019. Deposit-takers should consider whether they meet one of the three updated cases to be eligible for the new waiver and whether they wish to request the waiver by consent. PRA has set out the changes to the rules in the waiver direction.
Since 2016, BoE has publicly committed to reviewing the calibration of minimum requirement for own funds and eligible liabilities (MREL) before the end of 2020. In doing so, BoE will have regard to any intervening changes in the UK regulatory framework due to the revision of the Bank Recovery and Resolution Directive and the Capital Requirements Regulation as well as firms’ experience in issuing liabilities to meet their interim MRELs. This review may lead PRA to consider adjustments to the scope, functionality, and necessity of the rules on Continuity of Access. Pending the outcome of the review, PRA is providing a new waiver by consent for the Continuity of Access rules with an expiry of December 01, 2022. The waiver exempts a firm from the Continuity of Access rules (DPP 13.4-13.8 inclusive) and from the related Continuity of Access reporting requirements (DPP 15.2-15.4 inclusive and 15.7). This waiver by consent is available in relation to a firm if it meets the criteria in a case set out below:
- Case 1—On March 31, 2019, the total assets a firm is required to report on FINREP (F01.01) exceed GBP 15 billion.
- Case 2—On March 31, 2019, the aggregate amount of covered deposits a firm is required to report on COREP (C68.00.a) does not exceed GBP 2 billion; and the number of depositors a firm is required to report on PRA108 (65A) does not exceed GBP 150,000.
- Case 3—The firm is an overseas firm that is not an incoming firm and has a Part 4A permission that includes accepting deposits.
As part of the suite of reforms introduced during the transposition of the Deposit Guarantee Schemes Directive (DGSD) in 2015, PRA introduced rules in DPP requiring firms to put in place systems to ensure eligible depositors have continued access to Financial Services Compensation Scheme (FSCS)-covered deposits in resolution or insolvency by facilitating a transfer of such deposits (Continuity of Access).
Related Links
- Waiver by Consent of Continuity of Access Rules (PDF)
- Waiver Direction (PDF)
- Overview of Waivers and Modifications Rules
Keywords: Europe, UK, Banking, Waiver by Consent, Continuity of Access, COREP, FINREP, PRA Rulebook, MREL, DGSD, Reporting, Deposit Guarantee Schemes, PRA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Previous Article
Denis Beau of BDF on Supervisory Priorities for Climate-Change RisksRelated Articles
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.
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.
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).
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.
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.
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.
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.
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),
SNB Updates NSFR Forms and FINMA Consults on Operational Risk Circular
The Swiss National Bank (SNB) published Version 1.2 of the reporting forms (NSFR_G and NSFR_P) on the net stable funding ratio (NSFR) of banks, along with the associated documentation.
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
