Recovery planning

Policy Statement 29/17 | Consultation Paper 9/17
Published on 11 December 2017

Overview

This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback on responses to Consultation Paper (CP) 9/17 ‘Recovery planning’ and sets out the PRA’s final expectations on the content of recovery plans and on the approach to recovery planning for groups containing a ring-fenced body (RFB).

This PS is relevant to UK banks, building societies, PRA-designated investment firms and qualifying parent undertakings (‘firms’) to which the Recovery Planning Part of the PRA Rulebook applies.

Feedback on consultation responses

The PRA received eight responses to CP9/17. Respondents were broadly supportive of the proposals but did raise a number of specific issues and questions on the details of the proposed SS. 

The appendices to this PS set out the final SS for recovery planning (Appendix 1) and the updated SS8/16 (Appendix 2). The PRA has made minor amendments to the draft SS published in CP9/17, mainly to add further clarity, after considering the responses to the CP. Chapter 2 of this PS summarises the issues raised by respondents and notes the main areas of the final SS where the PRA has made amendments to the proposals contained in CP9/17.

PDF Recovery planning - PS29/17

Appendix 1

Recovery planning - SS9/17

Appendix 2

Ring-fenced bodies (RFBs) UPDATE


Published on 21 June 2017

In this consultation paper (CP), the Prudential Regulation Authority (PRA) proposes a new supervisory statement (SS) on recovery planning that would supersede SS18/13 ‘Recovery Planning’ and that sets out additional expectations of firms. This CP also includes a proposal to clarify the PRA’s expectations on the approach to recovery planning for groups containing a ring-fenced body (RFB), through a proposed update to SS8/16 ‘Ring-fenced Bodies (RFBs)’.

This CP is relevant to UK banks, building societies, PRA-designated investment firms and qualifying parent undertakings (‘firms’) to which the Recovery Planning Part of the PRA Rulebook applies.

Structure

This CP explains why the PRA is proposing to replace SS18/13. In general, the content of SS18/13 remains relevant but the proposed new supervisory statement (set out in Appendix 1) provides more detail of the PRA’s expectations to help improve the quality of firms’ plans. The PRA would welcome comments on the content of the draft SS.

The remainder of this CP explains areas where the PRA is introducing significant updates to SS18/13 and explains the rationale for doing so. The CP is structured as follows:

  • Chapter 2 sets out proposals relating to key recovery plan components and considerations;
  • Chapter 3 sets out proposals relating to recovery planning for UK subsidiaries of non-EU banks;
  • Chapter 4 sets out a proposed amendment to SS8/16 ‘Ring-fenced Bodies (RFBs)’ to clarify the PRA’s expectations with regard to recovery planning for groups containing an RFB;
  • Appendix 1 contains the draft SS for recovery planning; and
  • Appendix 2 sets out the proposed amendments to SS8/16 ‘Ring-fenced Bodies (RFBs)’.

Implementation

Subject to consultation responses, the PRA intends to publish a final policy statement in 2017 H2. The final policy statement will specify when firms will be expected to comply with the SS, allowing a reasonable period of time for them to do so.

Responses and next steps

This consultation closes on Thursday 21 September 2017.

This policy has been designed in the context of the current UK and EU regulatory framework. The PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework, including those arising once any new arrangements with the European Union take effect.

PDFConsultation Paper 9/17 

Appendix 1 of the CP, draft Supervisory Statement 'Recovery planning' also includes a link to:

ExcelRecovery plan information template

 

 
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