Strengthening individual accountability: Resolution assessments and reporting amendments

Consultation Paper 12/19
Published on 07 June 2019

Overview

In this Consultation Paper (CP), the Prudential Regulation Authority (PRA) sets out its proposal to amend the prescribed responsibility (PR) for recovery plans and resolution packs that forms part of the Senior Managers and Certification Regime (SM&CR) for strengthening individual accountability. It also sets out consequential changes to Supervisory Statement (SS) 28/15 ‘Strengthening individual accountability in banking’ and the form ‘Senior Managers Regime: Statement of Responsibilities’ (‘SoR form’), together with other administrative changes to this form.

The proposed amendment to the PR is relevant to those UK banks and building societies with £50 billion or more in retail deposits on an individual or consolidated basis at the date of their most recent annual accounts (‘in scope’ firms). It would result in the existing PR in respect of recovery plans and resolution packs being extended to include an equivalent responsibility for resolution assessments (conditional on the PRA introducing new rules in respect of such assessments).

The proposed amendments to the SoR form are relevant to all PRA-regulated firms including credit unions and small non-Directive insurers. However, for firms that are not subject to any future PRA rules in regard to resolution assessments, there will be no change to the PRA’s requirements and expectations of them.

Firms that are part of a group that contains a FCA solo-regulated firm should also be aware of the FCA’s proposed changes to ‘MIFID members of the management body and key function holders - Article 4 Information Form (SMR)’. The FCA is also proposing changes to the ‘MiFID Article 4 APER Information Form’. Since the changes will affect solo-regulated firms the changes are not set out in this CP and firms should refer to the FCA’s simultaneous Quarterly Consultation Paper.

Responses and next steps

The consultation closed on Wednesday 7 August 2019. 

The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP12_19@bankofengland.co.uk.

Implementation

The PRA intends to publish the final policy, rules, expectations, and SoR form in Q4 2019. This is dependent on the PRA introducing new rules in respect of resolution assessments.

PDFConsultation Paper 12/19

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