PRA Regulatory Digest - December 2021

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 04 January 2022

Top news and publications

  • FS1/21 – Responses to DP1/21 ‘A strong and simple prudential framework for non-systemic banks and building societies’
  • Joint letter to banks operating in the UK: Supervisory review of global equity finance businesses following the default of Archegos Capital Management

Cross cutting publications and updates

Prudential Regulation Authority statement on the 2022 cyber stress test: Retail payment system

13 December 2021

The PRA has announced that it will invite a number of firms to participate in a voluntary cyber stress test.

Further information

Banking publications and updates

PS28/21 – Remuneration: Identification of material risk takers

17 December 2021

This PRA Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 18/21 ‘Remuneration: Identification of material risk takers’. 

This PS is relevant to banks, building societies, and PRA-designated investment firms, including third country branches. This PS is not relevant to credit unions or PRA-authorised insurers.

Guidance on changes to banking reporting requirements

15 December 2021

The PRA has made a number of changes to banking regulatory reporting requirements, and this statement explains how these changes are being implemented in the CRR reporting modules.

PS27/21 – Designating investment firms

15 December 2021

This PRA PS provides the PRA’s final update to its Statement of Policy (SoP) ‘Designation of investment firms for prudential supervision by the PRA’, and the PRA’s final rule in the Definition of Capital Part of the PRA Rulebook following CP15/21 ‘Designating investment firms’. 

This PS is relevant to all PRA-designated UK investment firms. 

FS1/21 – Responses to DP1/21 ‘A strong and simple prudential framework for non-systemic banks and building societies’

15 December 2021

This PRA Feedback Statement (FS) provides a summary of the responses to Discussion Paper (DP) 1/21, which explored options for developing a ‘strong and simple’ prudential framework in the UK.

This statement is relevant for PRA-regulated banks and building societies that are neither systemically important nor internationally active.

The PRA would welcome comments or enquiries about this FS. Please address any comments or enquiries by email to DP1_21@bankofengland.co.uk. Further consultation papers will follow during 2022 and/or 2023.

Joint letter to banks operating in the UK: Supervisory review of global equity finance businesses following the default of Archegos Capital Management

10 December 2021

A letter from Nathanaël Benjamin, David Bailey, and Sarah Pritchard sent to CEOs of selected firms.

PRA statement on returning to setting Pillar 2A requirements as Risk Weighted Asset percentage

8 December 2021

On Thursday 7 May 2020, the PRA announced that, in response to the economic shock from Covid-19, it was alleviating unwarranted pressure on firms by setting Pillar 2A requirements as a nominal amount, instead of a percentage of total Risk Weighted Assets. 

This statement is relevant to UK banks, building societies, and PRA-designated investment firms, as well as UK financial holding companies and UK mixed financial holding companies of certain PRA-authorised firms.

Insurance publications and updates

PS29/21 – Review of Solvency II: Reporting (Phase 1)

17 December 2021

This PRA PS provides feedback to responses to CP11/21 ‘Review of Solvency II: Reporting (Phase 1)’. It also contains the PRA’s final rule instrument, UK Technical Standards amendment instrument, SoP, and Supervisory Statements (SS).

This PS is relevant to all UK Solvency II firms, the Society of Lloyd’s and its managing agents, insurance and reinsurance undertakings that have a UK branch (third-country branch undertakings), and firms within the PRA’s Temporary Permissions Regime for (re)insurers. 

Your input and views on open PRA consultations and other requests closing in January 2022

Closing date: 14 January 2022

Closing date: 21 January 2022

Also in the month

8 December 2021

Transforming data collection communications to firms

Communications to firms to provide an update on the progress of the joint transformation programme, which is being led by the Bank of England, FCA, and industry to transform data collection from the UK financial sector.

This latest communication provides an update on the progress of the programme since the launch, describing what has been achieved and the proposed activities for early 2022. It also provides an update on the expected resource needs for Transforming Data Collection for FY22/23 and engagement with stakeholders for input to solution designs.

1 December 2021

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.

Bank Overground - the purpose of Bank Overground is to share our internal analysis. Each bite-sized post summarises a piece of analysis that supported a policy or operational decision.

KnowledgeBank - 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 - readers are also referred to the following websites:

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