PRA Regulatory Digest - November 2019

The PRA Regulatory Digest is for people working in the UK financial services industry and highlights key regulatory news and publications delivered for the month.
Published on 02 December 2019

Top news and publications

  • PS25/19 ‘Solvency II: Maintenance of the transitional measure on technical provisions’
  • ‘Solvency II: Supervisory disclosures, PRA’s supervisory approach and insurance regulations applicable in the UK’

News and speeches

PRA fines Citigroup’s UK operations £44 million for failings in their regulatory reporting governance and controls

26 November 2019

The PRA has imposed a combined financial penalty on Citigroup Global Markets Limited, Citibank N.A. London branch and Citibank Europe Plc UK branch (together, Citi) of £43.9 million for failings in relation to their internal controls and governance arrangements underpinning compliance with PRA regulatory reporting requirements.

PRA and FCA publish Decision Notices given to former CEO who paid excessive remuneration to his wife to reduce his tax liability

18 November 2019

The regulators’ respective decision-making committee found, following a joint investigation, that between February 2010 and July 2016 Mr Forsyth transferred excessive amounts of his own remuneration to his wife to reduce his own tax liability and took steps to conceal that arrangement.

Cross cutting publications and updates

The Senior Managers and Certification Regime

22 November 2019

The Senior Managers and Certification Regime was extended to insurers last year. As a reminder to firms, the deadline to complete the first round of the annual certification process is Tuesday 10 December 2019. For further information visit the Strengthening accountability webpage.

Further information

Banking publications and updates

PRA publishes 2019 list of UK firms designated as other systemically important institutions

29 November 2019

The PRA publishes its 2019 list of UK firms designated as other systemically important institutions (O-SIIs), as required under the Capital Requirements Directive (2013/36/EU) as implemented in the Capital Requirements (Capital Buffers and Macro-prudential measures) Regulations 2014. The PRA are required to identify O-SIIs on an annual basis. For more information visit the Capital Requirement Directive IV webpage.

PRA publishes version 3.3.0 of the Bank of England Banking XBRL taxonomy

28 November 2019

The PRA has published version 3.3.0 of the Bank of England Banking XBRL taxonomy to support collection of Capital+ and ring-fencing reporting, alongside related technical artefacts. The taxonomy, release note, data point model dictionary, annotated templates and validation rules represent the requirements for PS16/19 ‘Regulatory reporting: European Banking Authority Taxonomy 2.9’. See the Taxonomy section of the Regulatory reporting – banks, building societies and investment firms page for more information.

Update to PRA110 liquidity metric monitor tool (PRA110 LMM tool)

1 November 2019

The PRA has published an update to the PRA110 LMM tool – see Version 01.04 and Version 02.02. This follows feedback received on the previous PRA110 LMM tools (Version 01.03 and 02.01) published on Thursday 3 October 2019. V01.04 of the PRA110 LMM tool is based on the current PRA110 template, while V02.02 uses the PRA110 template that will come into effect from Wednesday 1 January 2020. For more information visit the Supervisory tools: Liquidity tools webpage.

Further information

For information on banking regulatory returns and how to report them, visit the Regulatory reporting – banking sector page.

For details of forms used to collect data through the online statistical data application (OSCA), visit the Forms, definitions, and validation page.

Insurance publications and updates

Statement on the delegated regulation changes published by the European Commission

20 November 2019

The PRA published a reminder to firms that new requirements, primarily in relation to loss-absorbing capacity of deferred tax calculations, will come into effect on Wednesday 1 January 2020.

The PRA published a reminder to firms that new requirements, primarily in relation to loss-absorbing capacity of deferred tax calculations, will come into effect on Wednesday 1 January 2020. For more information please see ‘The PRA’s statement on the delegated regulation changes published by European Commission’.

PS25/19 ‘Solvency II: Maintenance of the transitional measure on technical provisions’

14 November 2019

This PRA Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 11/19 ‘Solvency II: Maintenance of the transitional measure on technical provisions’. It also contains the PRA’s final Supervisory Statement (SS) 6/16 ‘Maintenance of the ‘transitional measure on technical provisions’ under Solvency II’.

This PS is relevant to UK insurance reinsurance firms within the scope of Solvency II that have been granted approval to use the transitional measure on technical provisions; the Society of Lloyds; and firms that are considering applying to use this transitional measure.

‘Solvency II: Supervisory disclosures, PRA’s supervisory approach and insurance regulations applicable in the UK’

14 November 2019

The PRA published ‘Solvency II: Supervisory disclosures, PRA’s supervisory approach and insurance regulations applicable in the UK’ in line with the PRA’s obligations under Article 31(2) of the Solvency II Directive for year-end 2019. The material published will be of primary interest to PRA authorised insurance companies.

Member state responses to EIOPA’s February 2019 ‘Recommendations for the insurance sector in light of the United Kingdom withdrawing from the European Union’

12 November 2019

On Thursday 31 October 2019 the European Insurance and Occupational Pensions Authority (EIOPA) published member state responses to its February 2019 ‘Recommendations for the insurance sector in light of the United Kingdom withdrawing from the European Union’. The responses are available on EIOPA’s website.

The French regulator, Autorité de Contrôle Prudentiel et de Résolution (ACPR), has indicated in its response that it does not intend to comply with EIOPA’s Recommendation 6, relating to insurance policies originally sold in the United Kingdom by UK insurers to policyholders now resident/established in France.

For more information please see the 'PRA Statement on Autorité de contrôle prudentiel et de résolution (ACPR) response to EIOPA Recommendations for the Insurance Sector in light of the United Kingdom’s withdrawing from the European Union'.

Letter from Gareth Truran: PRA current areas of focus for general insurance firms

5 November 2019

Gareth Truran, Acting Director of Insurance Supervision sent a letter to Chief Executives of general insurance firms regulated by the PRA, outlining the PRA’s current areas of focus for general insurance firms.

Letter from James Orr: Feedback from recent PRA reserving reviews

5 November 2019

James Orr, Chief Actuary of General Insurance sent a letter to Chief Actuaries of general insurance firms regulated in the UK, outlining the feedback from recent PRA reserving reviews.

Further information

For information on insurance regulatory returns and how to report them, visit the Regulatory reporting – insurance sector page.

Your inputs and views on open PRA consultations and other requests closing in December 2019

Closing date: 3 December

Closing date: 9 December

Closing date: 9 December

Closing date: 18 December

Closing date: 18 December

Closing date: 27 December

More information

Bank Underground - 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.

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European and international developments - readers are also referred to the following websites:

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