16 December 2015 – The PRA published PS29/15 which includes final rules and an updated supervisory statement:
Strengthening individual accountability in banking: UK branches of non-EEA banks – PS29/15
This policy statement provides feedback on CP9/15 Strengthening accountability in banking: UK branches of foreign banks, and includes final and near-final rules on the application of the Senior Managers Regime (SMR), Certification Regime and Conduct Rules (collectively the new regimes) to UK branches of non-EEA banks and PRA-designated investment firms (non-EEA branches).
The PRA cannot make all the final rules necessary to extend the new regimes to non-EEA branches in full until Parliament approves HM Treasury’s order extending the definition of ‘relevant authorised person’ in section 71A of the Financial Services and Markets Act 2000 (FSMA) to incoming branches (section 71A order). HM Treasury laid the section 71A order before Parliament on 22 July 2015; at the time of writing, Parliament had not yet approved the section 71A order.
Notwithstanding the partial dependency, the PRA considers it important to give all firms as much certainty as possible to prepare for implementation on 7 March 2016. Consequently, this policy statement includes final and near-final rules.
This policy statement also includes near-final additions to Supervisory Statement 28/15 Strengthening individual accountability in banking which reflect the PRA’s expectations of how non-EEA branches should comply with certain aspects of the new regimes. All other aspects of SS28/15 as published will apply to non-EEA branches in the same way they apply to UK firms.
The PRA will publish a final revised version of SS28/15 and its statement of policy on conditions, time limits and variations of approval when it finalises the near-final rules.
This policy statement also contains other minor amendments and corrections to the PRA rules made in PS3/15 Strengthening individual accountability in banking and insurance — responses to CP14/14 and CP26/14 3 and PS16/15 Strengthening individual accountability in banking: responses to CP14/14, CP28/14 and CP7/15 which were published in March and July 2015 respectively. This policy statement should be read in conjunction with PS3/15 and PS16/15.
Readers may also find it useful to refer to the FCA’s website, in particular the FCA’s feedback statement FS15/3 Strengthening accountability in banking: UK branches of foreign banks – Feedback on ***FCA CP15/10, which contains the FCA’s near‐final rules and guidance on the extension of the FCA’s new regimes to both EEA and non‐EEA branches – see External Links.
Policy Statement (including Appendix 3)
- PRA Rulebook: CRR Firms Non-CRR Firms: Individual Accountability Instrument (No 3) 2015
- PRA Rulebook: CRR Firms Non-CRR Firms: Individual Accountability Instrument (No .....) 2015 [near-final rules]