Resolution planning

Supervisory Statement 19/13

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.

Update 28 February 2019

Interpreting Commission Implementing Regulation (EU) 2018/1624 in light of UK withdrawal from the EU: The UK’s withdrawal from the EU requires changes to be made to UK legislation to ensure that it remains functional. The Bank of England and PRA have published PS5/19 ‘The Bank of England’s approach to amending financial services legislation under the European Union (Withdrawal) Act 2018’. Changes are being made by the Bank’s BRRD BTS Exit Instrument. Furthermore, as described in PS5/19 the Bank of England, in its capacity as Resolution Authority, has published interpretative guidance in relation to the templates contained in Commission Implementing Regulation (EU) 2018/1624 on information for resolution planning. This guidance is available on Transitioning to post-exit rules and standards.

Current version

Published: 13 June 2018

Past versions

Published: 16 January 2015

Published: 19 December 2013

  • Update 31 August 2018

    PRA Supervisory Statement (SS)19/13 'Resolution Planning' sets out the resolution planning information that firms are expected to provide to the PRA in accordance with the PRA’s Resolution Pack rule in the PRA Rulebook.

    In October 2017, the European Banking Authority (EBA) consulted on changes to the Implementing Technical Standards (ITS) on information for resolution planning with the aim of further harmonising data collections and facilitating data exchange within resolution colleges. The ITS was submitted to the European Commission for approval on 17 April 2018. It stipulates that firms are expected to start reporting using the new templates by the end of May 2019 at the latest. The ITS sets minimum data requirements and will be directly applicable to firms. 

    National Resolution Authorities can set alternative requirements for firms subject to Simplified Obligations (SO) as defined in the EBA Regulatory Technical Standards (RTS) on SO. The EBA RTS on SO is expected to come into force later this year. The Bank of England (the Bank) as the UK Resolution Authority anticipates that all UK-headquartered firms that have been notified that their preferred resolution strategy does not involve the use of stabilisation powers, will be subject to SO in respect of resolution planning. As such, these firms will not need to submit the ITS templates unless the Bank informs them otherwise. The Bank will also inform subsidiaries of third country groups where these are not subject to SO. Firms subject to SO should continue to follow the expectations set out in SS19/13 in respect of Phase 1 resolution planning data submissions.

    Assuming the European Commission approves the ITS in its current form, all non-SO firms will be required to submit the templates on an annual basis in accordance with the ITS. The Bank expects firms to submit information in XBRL format. The Bank and the PRA recognise, however, that this could lead to duplicative reporting and put undue pressure on firms. In light of this, as of August 2018 the PRA has decided to delay resolution pack Phase 1 submissions under SS19/13 for these firms until 2020 (or later as required by your supervisor), as we assess the impact of the ITS on the expectations in SS19/13. During this period, resolution planning information can still be requested from firms under SS19/13 Phase 2 requirements.

    Your supervisory contact will be in touch with you by 6 September if you are affected. If you expect to be contacted but haven’t been, or if you have any queries, please get in touch with your usual supervisory contact.

    Update 13 June 2018

    Supervisory Statement 19/13 was updated following PS11/18 ‘Resolution planning: MREL reporting’, and takes effect from Tuesday 1 January 2019.

    Update 16 January 2015

    Supervisory Statement 19/13 was updated following Policy Statement 1/15 ‘Implementing the Bank Recovery and Resolution Directive’. SS19/13 sets out the PRA's expectations for the information that firms should provide to the regulator to aid resolution planning.

    Published on 19 December 2013

    The Resolution planning supervisory statement sets out our expectations for the information that firms should provide to us to aid resolution planning. 

Was this page useful?
Add your details...