Resolution planning: MREL reporting

Policy Statement 11/18 | Consultation Paper 1/18

Published on 13 June 2018

Resolution planning: MREL reporting - PS11/18

Overview

This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses from the Consultation Paper (CP) 1/18 ‘Resolution planning: MREL reporting’. It also sets out the PRA’s final expectations for the reporting on the minimum requirement for own funds and eligible liabilities (MREL). The appendices to this PS set out the updated Supervisory Statement (SS) 19/13 ‘Resolution planning’ (Appendix 1) and the reporting templates and guidance (Appendix 2).

This PS is relevant to PRA-authorised UK banks, building societies, UK designated investment firms and their qualifying parent undertakings (collectively referred to as ‘firms’), to which the Resolution Pack Part of the PRA Rulebook applies. In particular, this would be most relevant to:

  • firms notified by the Bank of England (the Bank) that they are likely to be subject to external interim and/or end-state MREL in excess of regulatory capital requirements as articulated in the Bank’s statement of policy on its approach to setting MREL (‘MREL Statement of Policy’); and
  • firms notified by the Bank that they are likely to be subject to internal interim and/or end-state MREL in excess of regulatory capital requirements, as articulated in the MREL Statement of Policy.

In CP1/18, the PRA consulted on the proposed reporting expectations for MREL resources, together with the level of application, frequency, format and implementation timetable, through an update to SS19/13.

Summary of responses

The PRA received three responses to CP1/18. Respondents were broadly supportive of the proposals. However, some respondents questioned whether the frequency of reporting would place a disproportionate burden on firms, and some sought further clarity on the details of the draft templates and guidance.

Implementation

The updated SS19/13 will take effect from Tuesday 1 January 2019.

PDFPolicy Statement 11/18

Appendices

Appendix 1: Supervisory Statement 19/13 'Resolution planning'

Appendix 2: Reporting templates and guidance:

Name Data item Guidance;
MRL001 MREL Resources    ExcelMREL reporting templates    PDFGuidance on reporting templates and definitions 
MRL002 MREL Resources Forecast
MRL003  MREL Debt

Published on 8 January 2018

Resolution planning: MREL reporting - CP1/18

Background

In this consultation paper (CP), the Prudential Regulation Authority (PRA) sets out its proposed expectations for reporting on the minimum requirement for own funds and eligible liabilities (MREL) through updates to Supervisory Statement (SS) 19/13 ‘Resolution planning’.

The CP is relevant to PRA-authorised UK banks, building societies, UK designated investment firms and their qualifying parent undertakings (collectively referred to as ‘firms’), to which the Resolution Pack Part of the PRA Rulebook applies. In particular, this would be most relevant to:

Summary of proposals

The purpose of the proposals in this CP is to provide the PRA and the Bank of England (authorities) with information to monitor firms’ progress towards meeting interim MREL, and eventual compliance with end-state MREL to ensure that the policy objectives that underpin MREL are met. The CP includes three implementation timelines in Chapter 2.

Responses and next steps

This consultation closed on Monday 9 April 2018. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP1_18@bankofengland.co.uk.

Documents in appendix to draft supervisory statement:

Name Data item Guidance
MRL01.00  MREL Resources   ExcelMREL reporting templates   PDFGuidance on reporting templates and definitions
MRL02.00  MREL Resources Forecast
MRL03.00  MREL Debt
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