Large Exposures

Supervisory Statement 16/13
Published on 28 June 2018

Update: On 28 June 2018, this supervisory statement was updated following publication of Policy Statement 14/18 ‘Changes to the PRA’s large exposures framework’. Specifically, Paragraph 1.1 has been updated to include reference to the resolution exemption. Paragraphs 2.4, 2.5A, 2.11, 3.2A, 3.4, 3.5, 3.8, 3.8A, 3.9 have been updated to provide additional guidance to firms on CUG and NCLEG permissions. Section 6 has been added to set out the PRA’s expectations on the resolution exemption. The changes to the rules and expectations will take effect from 29 June 2018 and is available under ‘Current version’ in the table below.

Update: On 7 July 2016, this supervisory statement was updated following publication of Policy Statement 20/16 ‘The implementation of ring-fencing: prudential requirements, intragroup arrangements and use of financial market infrastructures’ which included final ring-fencing rules and Supervisory Statement 8/16 ‘Ring-fenced bodies (RFBs)’. Specifically, paragraph 1.3 has been updated to take into account SS8/16, paragraph 2.4 has been updated to take into account the PRA’s objectives with respect to RFBs, and paragraph 3.10 has been added to set out expectations for RFBs wishing to apply for permission to apply a 0% risk weight to certain exposures under CRR Article 113(6). The updated SS will take effect from 1 January 2019 and is available under 'Future version' in the table below.

This supervisory statement is aimed at firms to which CRD IV applies. It outlines the PRA’s expectations in relation to large exposures requirements within the CRR. It covers:

  • Applications to include undertakings within a core UK group (CRR Article 113(6)) and non-core large exposure group (CRR 400(2)(c))
  • Sovereign large exposures exemptions (CRR Article 400(2)(g or h)) and exposures to trustees.

This statement should be read in conjunction with the specified CRR articles, the requirements in the Large Exposures Part of the PRA Rulebook and the high-level expectations outlined in the PRA’s approach to banking supervision. 

Updates

Date of publication Supervisory statement Update detail Effective from 
 Current version
 June 2018   PDFSupervisory Statement 16/13 UPDATE - June 2018 This SS was updated following PS14/18 ‘Changes to the PRA’s large exposures framework’.
29 June 2018
Future version
 June 2018   PDFSupervisory Statement 16/13 UPDATE - June 2018 This SS was updated following PS14/18 ‘Changes to the PRA’s large exposures framework’.  1 January 2019
Past versions of Supervisory Statement 16/13
 December 2013   PDFSupervisory Statement 16/13 Initial publication, December 2013. No longer effective (superseded by June 2018 version)
 July 2016   PDFSupervisory Statement 16/13 UPDATE - July 2016  This SS was updated following publication of PS20/16 'The implementation of ring-fencing: prudential requirements intragroup arrangements and use of financial market infrastructures'.  1 January 2019
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