PRA Finalizes Reporting and Rulebook Changes Under CRR and Solvency II
PRA published the policy statement PS21/19 that contains final rules amending certain parts of the PRA Rulebook, updated supervisory statements, and bank and insurer reporting templates and LOG files. The reporting related changes include corrections and clarifications to national specific templates (NSTs), internal model output templates, and the associated LOG files, along with the discontinuation of the FSA006 return, which provides PRA with Value at Risk (VaR) back-testing data for banks. PS12/19 also contains feedback to responses to the consultation paper CP13/19 that had proposed these changes. The changes fall under the Solvency II and Capital Requirements Regulation (CRR).
PS21/19 includes amendments related to the following:
- SS3/15 on the quality of capital instruments under Solvency II
- SS8/14 with information on subordinated guarantees and the quality of capital for insurers
- SS2/15 on the topic of own funds under Solvency II
- Regulatory Reporting Part of the PRA Rulebook
- SS34/15 on guidelines for completing regulatory reports
- Minor updates, corrections, and clarifications to national specific templates (NSTs), NST LOG files, internal model output templates and LOG files, and the related SS25/15 on regulatory reporting of internal model outputs. PRA amended NSTs including NS.07 and NS.08 (template and LOG file), NS.10 and NS.11 (LOG file), and Reporting Part of the PRA Rulebook. Amended internal model outputs include IM.00 and IM.03 (template and LOG file).
PRA received no responses in respect of Chapters 2 to 4 of CP13/19, and will therefore publish the policy as proposed. In addition, PRA has made further administrative corrections to SS8/14. PRA received one response to Chapter 5 of CP13/19. The response requested clarity on several templates and LOG files. After considering the response, PRA has made the certain changes related to NS.00, NS.07, NS.08, and NS.10. The implementation dates for all policy changes set out in PS21/19 are on publication of the final policy for Chapters 2 to 4 and on November 30, 2019 for Chapter 5. PRA wishes to clarify that deletion of the rule that required reporting of the FSA006 (as set out in Appendices 4 and 5 of PS21/19) takes effect immediately. Therefore, firms that would otherwise have been in scope of this requirement will not need to submit an FSA006 return for the period ending September 30.
The policy set out in Appendices 1 to 5 of PS21/19 has been designed in the context of the current UK and EU regulatory framework. PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework, including those arising once any new arrangements with EU take effect. If UK leaves EU with no implementation period in place, PRA has assessed that the policy would not need to be amended under the EU (Withdrawal) Act 2018. The policy set out in Appendices 6 to 14 of PS21/19 relates to reporting and should be read in conjunction with SS2/19 on PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after the withdrawal of UK from EU.
Related Links
Effective Date: September 30, 2019 (Chapters 2-4 of CP13/19 and Appendices 4 and 5 of PS21/19); November 30, 2019 (Chapter 5)
Keywords: Europe, UK, Banking, Insurance, Reporting, PRA Rulebook, PS 21/19, CP 13/19, Solvency II, CRR, National Specific Templates, FSA 006, Internal Models, 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.
Adam Koursaris
Asset and liability management expert; capable modeler; risk and capital specialist
Previous Article
BCBS Finalizes Certain Revisions to the Leverage Ratio StandardRelated 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
