Occasional Consultation Paper - October 2019

Consultation Paper 25/19
Published on 07 October 2019


This Consultation Paper (CP) proposes minor amendments to Prudential Regulation Authority (PRA) Rulebook Parts, supervisory statements (SSs), statements of policy (SoPs) and the relevant templates.

The chapters in this CP are relevant to different firms, as follows:

  • Chapters 2 and 5 - all firms to which CRD IV applies, and Chapter 2 additionally to building societies;
  • Chapter 3 - UK banks, building societies, credit unions, PRA-designated investment firms, UK Solvency II insurance firms, third country insurance branches within the scope of the PRA’s rules transposing the Solvency II Directive, and the Society of Lloyd's and managing agents; and
  • Chapter 4 – Reporting updates; UK banks, building societies and PRA-designated investment firms.

The chapters contained in this CP, the Rulebook Parts, SSs, SoP, and relevant templates they propose to change, and the appendices containing the draft policy, are listed in the table below.

CP 25/19 chapter

Rulebook Part/SS/SoP/Template


2. Removing references to LIBOR

SS20/15 ‘Supervising building societies’ treasury and lending activities’


SoP ‘The PRA’s methodologies for setting Pillar 2 capital’


3. Senior Managers regime – updating references and corrections

SS28/15 ‘Strengthening individual accountability in banking’


SS34/15 ‘Strengthening individual accountability in insurance’


4. Reporting updates for Capital+ and Ring‑fenced bodies

Regulatory Reporting Part of the PRA Rulebook


Templates PRA101, PRA102, RFB003, RFB004 and RFB008.


5. Retirement interest-only mortgages

SS11/13 ‘Internal Ratings Based (IRB) approaches’


SS10/13 ‘Standardised approach’



Subject to the PRA’s consideration of the responses to the consultation, the proposed implementation dates are:

  • on the same date as publication of the final policy for Chapters 2 and 3;
  • as set out in Appendix 5 for Chapter 4.

For Chapter 5, the PRA proposes that firms should implement the proposed changes by Tuesday 31 December 2020, in order to  align with the proposed implementation date of the relevant European Banking Authority (EBA) guidelines, as set out in CP21/19 ‘Credit risk: Probability of Default and Loss Given Default estimation’.

Responses and next steps

The consultation period for Chapter 4 of this CP closes on Monday 18 November 2019. This would allow the PRA to make the proposed changes to the templates and allow firms time to implement them before they would take effect on Sunday 1 March 2020 and Monday 1 June 2020 (see Appendix 5).

The consultation period for the remaining chapters closes on Monday 9 December 2019.

The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to OCP.responses@bankofengland.co.uk .

The proposals set out in this CP have 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. Each chapter in this CP sets out the PRA’s assessment of whether the proposals would need to be amended under the European Union (Withdrawal) Act 2018 (EUWA). Please see Policy Statement (PS) 5/19 ‘The Bank of England’s amendments to financial services legislation under the EUWA’  for further details.

PDFConsultation Paper 25/19

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