Published on
01 March 2019
Cross-cutting publications and updates
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Bank of England’s approach to financial services legislation under the European Union (Withdrawal) Act 2018 – February 2019
The Bank of England (Bank) published a news release introducing the communications issued today. Of particular interest to those working with or at PRA-regulated firms are:
- Joint Bank and PRA Policy Statement (PS) 5/19 ‘The Bank of England’s amendments to financial services legislation under the European Union (Withdrawal) Act 2018’
- Joint Bank and PRA Statement of Policy (SoP) ‘Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU’
- PRA Supervisory Statement (SS) 1/19 ‘Non-binding PRA materials: The PRA’s approach after the UK’s withdrawal from the EU’
- PRA SS2/19 ‘PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after the UK’s withdrawal from the EU’
- Update to PRA SS18/15 ‘Depositor and dormant account protection’
For further information and materials about The Bank’s work on the UK’s withdrawal from the EU, please see the dedicated EU withdrawal webpages that includes links to information on the authorisation of EEA banks and insurers, the temporary permissions regime, Transitioning to post-exit rules and standards, and information on the transfer of roles and responsibilities to the Bank.
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PS3/19 'PRA fees and levies: Changes to periodic and transaction fees'
13 February 2019
This PS provides feedback to responses to Consultation Paper (CP) 28/18 ‘PRA fees and levies: Changes to periodic and transaction fees’ (see page 2 of 2). This PS is relevant to all PRA-regulated firms but particularly insurers and designated investment firms (DIFs), as well as firms which have, or intend to apply in the future for, Solvency II or Capital Requirements Regulation (CRR) models.
This PS sets out the PRA’s final policy on:
- a revised approach to periodic fees for DIFs;
- amending the approach to periodic fees for life insurers;
- updating the Part VII regulatory transaction fees for insurers;
- updating the internal model application fees for insurers;
- updating the internal model application and model maintenance fees for DIFs;
- updating the rules relating to the provision of relief from PRA fees in exceptional circumstances (all firms);
- other minor corrections to PRA fees rules (all firms); and
- updates to SS3/16 ‘Fees: PRA approach and application’ (all firms).
Reminder of 1 July 2019 PRA110 implementation
1 February 2019
Firms are reminded that PRA110 reporting and the commencement of the dual reporting period with FSA047 and FSA048 will take effect on Monday 1 July 2019. Firms are encouraged to check the Regulatory reporting – banking sector page for updates on PRA110 reporting, and to continue to familiarise themselves with the policy, template and instructions, and Q&As, to prepare for implementation.
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For information on cross-cutting activity see:
Insurance publications and updates
PS4/19 ‘Solvency II: Adjusting for the reduction of loss absorbency where own fund instruments are taxed on write down’
20 February 2019
This PS provides feedback on responses to CP27/18 ‘Solvency II: Adjusting for the reduction of loss absorbency where own fund instruments are taxed on write down’. It also contains the PRA’s final policy on updating SS3/15 ‘Solvency II: The quality of capital instruments’, see Appendix 1.
The PRA has also issued a reporting clarification on how such adjustments should be reflected in the Solvency II reporting templates (Appendix 2).
This PS is relevant to UK insurance firms within the scope of Solvency II, the Society of Lloyd’s, and firms that are part of a Solvency II group that will determine and classify capital instruments under the Solvency II own funds regime, together with their advisors.
Updated Solvency II XBRL filing manual
7 February 2019
The Bank of England has updated the Solvency II XBRL filing manual to help firms and software vendors create XBRL instance documents for Solvency II Pillar 3 reporting in light of the EIOPA Solvency II Taxonomy 2.3.0 hotfix update. See ‘Technical artefacts and support’ section on the Regulatory reporting – Insurance sector webpage, for the updated filing manual.
CP3/19 ‘Solvency II: Longevity risk transfers – simplification of pre-notification expectations’
5 February 2019
The PRA sets out its proposals to update SS18/16 ‘Solvency II: longevity risk transfers’. It proposes to change its expectations for pre-notification of longevity risk transfers and hedge arrangements, and update the key risks the PRA considers arise from longevity risk transfers.
This CP is relevant to PRA-authorised UK firms that fall within the scope of the Solvency II Directive and to the Society of Lloyd’s.
This consultation closes on Monday 6 May 2019.
PRA open consultations - closing March 2019
Closing date: 22 March 2019
Also in the month
25 February 2019
21 February 2019
‘The creative economy’ speech by Andy Haldane
14 February 2019
12 February 2019
7 February 2019
‘Positive externalities’ speech by Martin Taylor
PRA Regulatory Digest Survey
1 February 2019
It is really important that we hear from you to find out whether the PRA Regulatory Digest gives you information succinctly and helpfully about PRA communications, and Bank of England resources.
We ask for 2 minutes of your time to complete the short survey, before its closing date of Friday 15 March 2019.
These items are selected from Latest Bank of England news. Readers may also find it useful to refer to the Statistics and Research sections of the Bank’s website.Bank Underground
Bank Underground is a blog for Bank of England staff to share views that challenge – or support – prevailing policy orthodoxies. The views expressed here are those of the authors, and are not necessarily those of the Bank of England or its policy committees.
Bank Overground
The purpose of Bank Overground is to share the PRA’s internal analysis. Each bite-sized post summarises a piece of analysis that supported a policy or operational decision.
To view all Bank Overground articles, by selecting Bank Overground on the News and publications section on the Bank of England website.
KnowledgeBank
This month KnowledgeBank includes a guide on the future of work ‘Will a robot takeover my job?’
From interest rates and inflation through to bank failures and financial crises, KnowledgeBank uses everyday examples and engaging visuals to bring economics to life.
European and international developments
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