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
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