First published 19 December 2013
Overview
The Resolution planning supervisory statement sets out our expectations for the information that firms should provide to us to aid resolution planning.
29 March 2022: Extension of SS19/13 Resolution Pack Phase 1 reporting pause
The PRA is extending the suspension of Phase 1 reporting under SS19/13, until further notice. The suspension was extended in May 2020 to all firms in scope of the Resolution Pack Part of the PRA Rulebook, and was due to expire at the end of 2022 (see below). The pause is being further extended while the PRA assesses areas of potential duplication between reporting expectations under SS19/13, COREP13 requirements, and PRA109. Unless otherwise notified on an individual basis, the pause continues to apply to all firms in scope of the Resolution Pack Part of the PRA Rulebook.
Firms are reminded of the following:
- Firms must continue to comply with the PRA’s Fundamental Rule 8 on preparing for resolution, including by being able to provide the regulators with information in a timely manner
- Notwithstanding the pause, the PRA can request Phase 1 resolution packs from firms on a case-by-case basis
- Phase 2 reporting under SS19/13 remains unchanged, and the PRA may still request this information from firms
- Firms in scope of stabilisation powers must continue to submit COREP13 reporting
7 May 2020: Extension of SS19/13 Resolution Pack Phase 1 reporting pause
On 31 August 2018 the PRA announced that it would delay Resolution Pack Phase 1 submissions under SS19/13 to 2020 for the largest PRA regulated firms, specifically those not subject to Simplified Obligations (SO) for Resolution Planning as defined in the EBA Regulatory Technical Standards (RTS) on SO. In that announcement, smaller firms subject to SO were expected to continue to submit Phase 1 resolution planning information. The PRA also noted that resolution planning information could still be requested from all firms under SS19/13 Phase 2 requirements. These decisions were taken in light of EBA reporting requirements published subsequent to SS19/13. The concern was that there could be duplicative reporting for larger firms.
The postponement of Resolution Pack Phase 1 submissions under SS19/13 has been extended to the end of 2022 in order to alleviate operational burden on firms in response to the Covid-19 outbreak. The postponement now applies to all firms in scope of the Resolution Pack Part of the PRA Rulebook, unless a firm has been notified otherwise on an individual basis by the PRA. Phase 2 reporting under SS19/13 remains unchanged, although the PRA may still request this information from firms. Minimum requirement for own funds and eligible liabilities (MREL) reporting under SS19/13 also remains unchanged.
10 June 2019: Publication of EU’s revised rules on capital requirements
The European Union published a package of legislative amendments in the Official Journal of the European Union on 7 June 2019 - see Official Journal of the European Union, L 150, 7 June 2019.
The package included a new Regulation (EU/2019/876) amending Regulation (EU/575/2013) as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, report and disclosure requirements, and Regulation (EU/648/2012) (CRR II).
CRR II includes requirements which enter into force from 27 June 2019 (see Article 3 (3)). In light of the change to CRR Article 26(3), we recognise that Rules 7.1 and 7.5 of the Definition of Capital Part of the PRA Rulebook no longer achieve the purpose for which they were made. Therefore, it has been decided to offer a modification by consent, please see our Waivers and modifications of rules page. We intend to consult in due course on amending Chapter 7 of the Definition of Capital Part of the PRA Rulebook, and any expectations we have of firms on the application of CRR Article 26(3).
CRR II resolution specific requirements will apply to UK global systemically important banks (G-SIBs) and UK material subsidiaries of non-EU G-SIBs from 27 June 2019. These firms should refer to the notice found on the Resolution page.