- Exercise by the Bank of England and Prudential Regulation Authority of sub-delegated powers under the European Union (Withdrawal) Act 2018
- ‘Prudentist’ – speech by Sam Woods
- Letter from David Bailey and Rebecca Jackson ‘Thematic findings on the reliability of regulatory reporting’
- Letter from PRA and FCA on trade finance activity
News and speeches
Prudentist – speech by Sam Woods
22 September 2021
Sam Woods sets out the PRA’s future work. He says the capital and liquidity of banks and insurers are strong, despite Covid. There are now a number of other priorities for the regulator to focus on.
Cross cutting publications and updates
Letter from the Bank, PRA, and FCA ‘2021 CBEST thematic findings’
30 September 2021
Letter from the supervisory teams of the Bank, PRA, and FCA to senior management functions with responsibility for cyber, highlighting the thematic findings from the latest cycle of CBEST assessments.
Letter from Victoria Saporta ‘Thematic feedback from the 2020/2021 round of written auditor reporting’
30 September 2021
Letter from Victoria Saporta, Executive Director of Prudential Policy, to chief financial officers providing thematic feedback to both firms and auditors from the PRA’s review of written auditor reports received in 2021.
Exercise by the Bank of England and Prudential Regulation Authority of sub-delegated powers under the European Union (Withdrawal) Act 2018
23 September 2021
On Tuesday 21 September, HM Treasury laid a report in Parliament on the Bank’s and PRA’s use of sub-delegated powers under the EU (Withdrawal) Act 2018. The Bank and PRA must submit this report to Parliament annually if they exercise the relevant sub-delegated powers. This covers the financial year ending Sunday 28 February 2021.
PRA statement on Remuneration Benchmarking and High Earners 2020 submissions
3 September 2021
This statement provides an update on the Remuneration Benchmarking and High Earners 2020 submissions, relevant to PRA-regulated firms within scope.
Letter from Andrew Bailey to the Chancellor responding to the recommendations from the Treasury
1 September 2021
Letter from the Chair of the Prudential Regulation Committee addressing the recommendations set out by the Chancellor of the Exchequer on the remit of the PRA.
Banking publications and updates
PS20/21 – Financial holding companies: Further implementation
15 September 2021
This PRA Policy Statement (PS) provides the PRA’s final rules following Consultation Paper (CP) 12/21 ‘Financial holding companies: Further implementation’. It also contains:
- the PRA’s new SoP ‘Supervisory measures and penalties in relation to financial holding companies’; and
- an updated SoP ‘The Prudential Regulation Authority’s approach to enforcement: statutory statements of policy and procedure’.
This PS is relevant to financial holding companies, mixed financial holding companies, PRA-authorised banks, and PRA-designated investment firms that are part of a UK consolidation group, controlled by a UK parent financial holding company, or UK parent mixed financial holding company.
Letter from David Bailey and Rebecca Jackson ‘Thematic findings on the reliability of regulatory reporting’
10 September 2021
Letter to chief executives highlighting thematic findings on the reliability of regulatory reporting and reiterating our supervisory expectations in this area.
Letter from PRA and FCA on trade finance activity
9 September 2021
Letter to chief executive officers from Rebecca Jackson (PRA), Melanie Beaman (PRA), Edwin Schooling Latter (FCA), and David Geale (FCA), highlighting supervisory expectations of firms undertaking trade finance business.
CP19/21 – Domestic Liquidity Sub-Groups
28 September 2021
This Consultation Paper (CP) sets out the PRA’s proposed rules in respect of the application of prudential liquidity requirements to Domestic Liquidity Sub-Groups (DoLSubs). It also includes proposed revisions to the PRA’s approach to granting a DoLSub permission. This CP would result in changes to the Liquidity (CRR) Part of the PRA Rulebook and the Statement of Policy (SoP) ‘Liquidity and funding permissions’.
This consultation is relevant to PRA-authorised UK banks, PRA-designated UK investment firms, and building societies. It is also relevant to UK financial or mixed financial holding companies that are the immediate parent undertakings of firms that may be included in a DoLSub. It is not relevant to credit unions.
This consultation closes on Tuesday 12 October 2021.
CP18/21 – Remuneration: Identification of material risk takers
8 September 2021
This CP sets out the PRA proposed changes in respect of the applicable requirements on the identification of material risk takers (MRTs) for the purposes of the PRA’s remuneration regime.
The PRA’s proposals would result in:
- changes to the Remuneration Part of the PRA Rulebook, to insert the criteria for identifying MRTs and relevant definitions;
- updates to Supervisory Statement (SS) 2/17 ‘Remuneration’, to reflect the rule changes and the amended process for excluding an employee identified solely based on the quantitative criteria; and
- the revocation of Commission Delegated Regulation (EU) No 604/2014 of 4 March 2014 (2014 Regulatory Technical Standards (2014 RTS)) as regards PRA-regulated firms.
This consultation is relevant to banks, building societies, and PRA-designated investment firms, including third country branches. This CP is not relevant to credit unions or PRA-authorised insurers.
This consultation closes on Monday 8 November 2021.
Insurance publications and updates
CP17/21 – Solvency II: Definition of an insurance holding company
6 September 2021
This CP sets out the PRA proposed approach to interpreting and applying the definition of an insurance holding company for the purposes of the Group Supervision Part of the PRA Rulebook.
The proposals in this CP would result in changes to the Glossary Part of the PRA Rulebook and to Chapter 1 of SS9/15, ‘Solvency II: Group supervision’. The PRA also proposes to make changes throughout SS9/15 as a result of the UK’s withdrawal from the European Union (EU) to amend or remove references to the EU or EU-derived law.
The CP is relevant to insurance firms within the scope of the Group Supervision Part of the PRA Rulebook and to the Society of Lloyd’s.
This consultation closes on Monday 6 December 2021.
Your input and views on open PRA consultations and other requests closing in October 2021
Closing date: 5 October
Closing date: 8 October
Closing date: 28 October
Also in the month
27 September 2021
22 September 2021
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