Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the Prudential Regulation Authority, spoke at a panel to celebrate the fifth anniversary of the PRA’s Secondary Competition Objective (SCO). This objective requires the PRA to act, where possible, to facilitate effective competition when it makes policies to advance its primary objectives of safety and soundness, and policyholder protection.
This Financial Conduct Authority (FCA) and PRA Consultation Paper (CP) sets out proposals for the management expenses levy limit (MELL) for the Financial Services Compensation Scheme for 2019/20.
This document is relevant to all FCA and PRA authorised firms. It is not directly relevant to retail financial services consumers or consumer groups and they do not need to act upon it.
Please send any comments on the proposed MELL by Thursday 28 February 2019. Please use the online response form on the FCA’s website or write to the FCA at the address on page 2. The FCA is accepting responses on behalf of both the FCA and the PRA, and responses will be considered by both authorities.
The PRA and FCA published the final direction on the manner in which firms must make information regarding ‘private’ securitisations available to their UK competent authorities. This direction is applicable to all UK established originators, sponsors and securitisation special purpose entities (SSPEs).
The annex to this statement includes the template to be used for notifying the PRA and FCA.
This Policy Statement (PS) provides the final rules and forms to CP21/18 ‘Regulatory transactions: Changes to notification and application forms’ (see page 2 of 2).
This PS is relevant to all PRA-authorised firms as well as firms that have a qualifying holding, or that intend to acquire a qualifying holding in a PRA-authorised firm.
The PRA published a note that clarifies the interaction between the PRA’s and FCA’s proposals for applying the Senior Managers and Certification Regime (SM&CR) to firms in the temporary permissions regime (TPR). In particular, this note includes a set of Frequently Asked Questions (FAQs) on how the two sets of proposals would apply to dual-regulated, EEA firms currently operating in the UK via an establishment passport through a branch (‘EEA branches’).
For information on cross-cutting activity see:
In December 2018 the EBA published its final report on the EBA Guidelines on institutions' stress testing. The Guidelines will apply to all firms in 2019 and will assist firms to identify, assess, measure, and manage tail risks. The PRA will refer to the Guidelines when assessing the quality of firms’ stress-testing programmes. The PRA expect firms to reflect on how they will incorporate the new Guidelines into their stress testing practices, noting that the approach will depend on the individual firm’s business, size or complexity. Firms will also need to continue to comply with the PRA’s published policy and reporting requirements on stress testing, as set out in PRA Rules, Supervisory Statements, and Statements of Policy. The Guidelines form part of a wider set of updated guidance by the EBA on the Pillar 2 framework, as published in the EBA’s final guidance to strengthen the Pillar 2 framework.
Melanie Beaman, Director of UK Deposit Takers, hosted the annual conference for the CEOs of non-systemic UK banks and building societies on Tuesday 15 January. The conference provided feedback on current regulatory matters, set out the PRA’s supervisory strategy, key risks and highlighted major prudential policy initiatives for 2019.
In this CP, the PRA sets out its proposed changes to Supervisory Statement (SS) 17/13 ‘Credit risk mitigation’ to clarify expectations regarding the eligibility of financial collateral as funded credit protection under Part Three, Title II, Chapter 4 (Credit risk mitigation) of the Capital Requirements Regulation (575/2013) (CRR).
This CP is relevant to UK banks, building societies and PRA-designated UK investment firms that are subject to the CRR. This consultation closes on Wednesday 10 April 2019.
This PS provides feedback to responses to CP22/18 ‘Liquidity reporting: FSA047 and FSA048’ and the proposal in CP16/18 ‘Regulatory reporting: occasional consultation paper’ to correct the level of consolidation of the PRA110 reporting requirements. It also contains the PRA’s final policy, as follows:
This PS is relevant to banks, building societies, and PRA-designated investment firms.
This SS was updated following PS1/19 ‘Liquidity reporting: FSA047, FSA048, and PRA110’ to reflect the extension to the FSA047 and FSA048 end date from Sunday 30 June 2019 to Tuesday 31 December 2019. The updates to this SS are effective immediately.
On Tuesday 1 January 2019, structural reform (also referred to as ring-fencing) requirements came into effect for banks with more than £25 billion of retail deposits. This means that new legal structures and ways of operating have been delivered through large and complex restructuring programmes in 2017 and 2018. These changes also affected some of the banks’ customers, counterparties and suppliers.
For further details on structural reform and the policy issued to date see the structural reform webpage.
A number of data items and instructions came into force on Tuesday 1 January including:
The following data items and instructions were updated to reflect policy effective from Tuesday 1 January:
These are available in the ‘Data items, instructions and taxonomy’ section on the Regulatory reporting Banking sector webpage.
The Branch Return form also came into force on Tuesday 1 January and is available in the ‘Branch Return Form’ section of the Regulatory reporting – Banking sector webpage.
This letter from Anna Sweeney, Director of Insurance Supervision, provides feedback on the key themes that emerged from firms’ responses, and areas where we think that firms can do more to ensure the prudent management of cyber risk exposures.
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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.
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.
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