In this consultation paper (CP), the Prudential Regulation Authority (PRA) sets out its proposal to amend the reporting frequency of the PRA110 reporting template (PRA110), when a firm is in stress.
The proposed rule would introduce a further threshold of total assets of £5 billion or above, calculated in accordance with Council Directive 86/635/EEC. Firms above this threshold, that would otherwise report PRA110 monthly, would report on every business day if (and for as long as) there is a specific liquidity stress, or market liquidity stress in relation to the firm, branch, or group in question.
The proposals in this CP would make amendments to:
- the Regulatory Reporting Part of the PRA Rulebook (Appendix 1 and Appendix 2); and
- Supervisory Statement (SS) 24/15 ‘The PRA’s approach to liquidity and funding risk’ (Appendix 3).
This CP is relevant to PRA-authorised UK banks, building societies, and PRA-designated UK investment firms, referred to collectively as ‘firms’ with total assets of £5 billion or above, calculated in accordance with Council Directive 86/635/EEC.
Responses and next steps
This consultation closes on Friday 27 September 2019. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP14_19@bankofengland.co.uk.
The proposals are based on the United Kingdom (UK) and European Union (EU) regulatory framework as it currently stands. The PRA has assessed that the proposals will be affected in the event that the UK leaves the EU with no implementation period in place. A second version of the proposed rules which includes the relevant changes relating to the UK’s withdrawal from the EU is set out in Appendix 2.
The proposed implementation date for the proposals in this CP is Friday 1 May 2020.