First published on 29 July 2015
This supervisory statement is of interest to banks, building societies and Prudential Regulation Authority (PRA) designated investment firms. It sets out the PRA’s expectations of firms and provides further clarity on Pillar 2 reporting.
This supervisory statement (SS) should be read alongside the Reporting Pillar 2 Part of the PRA Rulebook, and other relevant documents, including:
- for firms that are not Small Domestic Deposit Takers (SDDTs) or SDDT consolidation entities: SS31/15 – The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP) and the PRA’s statement of policy (SoP) 5/15 – The PRA’s methodologies for setting Pillar 2 capital; and
- for SDDTs and SDDT consolidation entities: SS4/25 – The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP) for Small Domestic Deposit Takers (SDDTs) and SoP5/25 – The PRA’s methodologies for setting Pillar 2 capital for Small Domestic Deposit Takers (SDDTs).
The reader is also referred to the appendices:
- Appendix 1: Guidance on terms used in data items FSA071 to FSA081, PRA111, and PRA119;
- Appendix 2: Pillar 2 Reporting schedule;
- Appendix 3: Instructions for completing data items FSA071 to FSA081, and PRA111 for firms that are not SDDTs or SDDT consolidation entities; and
- Appendix 4: Instructions for completing data items FSA081, PRA111, and PRA119 for SDDTs and SDDT consolidation entities.
The materials contained in the appendices are also available on the Regulatory reporting – banking sector page.