Published on 18 April 2016
Liquidity: switch from FSA returns to ALMM returns - PS15/16
Overview
This Policy Statement (PS) follows PS11/15 ‘CRD IV: Liquidity’ and finalises the date of changes to liquidity reporting rules to end the reporting of data items FSA050-053 ahead of the introduction of EU requirements to report additional liquidity monitoring metrics (ALMM). These changes will take effect from 22 April 2016.
This PS is relevant to banks, building societies and PRA-designated investment firms.
Appendix
PRA RULEBOOK: ENACTING REGULATORY REPORTING AMENDMENT (DATE) INSTRUMENT 2016
Published on 8 June 2015
CRD IV: Liquidity - PS11/15
This policy statement (PS) sets out the PRA’s final rules and supervisory statement (SS24/15) and provides feedback on responses to the proposals in CP27/14 to accommodate the European Commission’s delegated act with regard to the liquidity coverage requirement (LCR) for credit institutions.
This PS is relevant to UK banks, building societies and PRA UK-designated investment firms; third-country firms that are banks or designated investment firms; and European Economic Area (EEA) credit institutions that have a branch in the United Kingdom.
Summary of content
In light of feedback received to CP27/14, some of the proposals have been revised. For example:
- the PRA will no longer stipulate a rule requiring firms to be able to comply with daily reporting against the whole range of COREP liquidity returns – instead the PRA will apply this requirement through a supervisory expectation and will only expect firms to be able to provide daily reporting for a sub-set of the returns;
- third country branches will not be required to provide whole-firm liquidity information through COREP returns – the PRA will determine the specific format of the required returns in due course; and
- the period that the FSA returns will run in parallel to the COREP LCR returns has been reduced. FSA054 will not be required past 1 October 2015, and FSA050 to FSA053 will not be required after 1 October 2015 or when their equivalent AMM return is received (whichever is later). The PRA will review the period that FSA047 and FSA048 will be maintained, taking into account in particular progress in implementing the AMM return C 66.00.
The rules and supervisory statement come into force from 1 October, except for Annex E to the PRA Handbook – Liquidity Standards Consequentials Instrument 2015, which deletes the requirement to submit certain liquidity returns. The rules in Annex E will come into force on a date specified by a subsequent PRA Board Instrument following adoption by the European Commission of the EBA final draft implementing technical standards on additional liquidity monitoring metrics under Article 415(3)(b) of Regulation (EU) No 575/2013 and subsequent PRA review.
Published on 28 November 2014
CRD IV: Liquidity - CP27/14
Background
On 10 October 2014, the European Commission published a delegated act to supplement EU Regulation (EU) No 575/2013 (‘Delegated Act’) with regard to the liquidity coverage requirement (LCR) for credit institutions. This legislation is due to enter into force by 31 December 2014. It will be directly applicable in the United Kingdom from 1 October 2015. In light of this, the PRA must revoke existing rules where appropriate, and restate its overall approach to regulating liquidity.
This consultation is relevant to UK banks, building societies and UK designated investment firms (‘firms’). It is also relevant to third country firms that are banks or designated investment firms, and European Economic Area credit institutions that have a branch in the United Kingdom.
Summary of the proposals covered by the CP
This CP seeks views on draft rules and a draft supervisory statement which set out the PRA’s proposed update to its liquidity regime.
The CP is structured as follows:
- Section I details how the PRA proposes to carry out the transition to its new liquidity regime, taking into account the Delegated Act that will apply from 1 October 2015.
- Section II explains the requirements the PRA proposes to place on firms beyond meeting the LCR.
- Section III details the elements of the PRA’s proposed new regime which will not be covered by EU legislation.
- Section IV contains a cost benefit analysis of the proposals.
Appendices to CP27/14 include a draft supervisory statement: The PRA’s approach to supervising liquidity and funding risk, draft rules and the mapping of BIPRU 12 rules to the Internal Liquidity Adequacy Assessment (ILAA) Part of the PRA Rulebook.
Responses
This consultation closed on Friday 27 February 2015.