Top news and publications
- Update on the sixth edition of the Regulatory Initiatives Grid
- Consultation Paper 15/22 - Remuneration: Ratio between fixed and variable components of total remuneration (‘bonus cap’)
News and speeches
Implementing Basel 3.1 in the UK − speech by Phil Evans
7 December 2022
Phil provides an overview of the approach in the PRA’s CP 16/22 – ‘Implementation of the Basel 3.1 standards’, setting out its proposed rules that cover the parts of the Basel III standards that remain to be implemented in the UK. The PRA refers to them as ‘the Basel 3.1 standards’.
The Basel 3.1 standards constitute a comprehensive package of proposed measures that would make significant changes to the way firms calculate risk-weighted assets for the purposes of calculating risk-based capital ratios. The proposed changes are designed to improve the measurement of risk in internal models and standardised approaches and reduce excessive variability in the calculation of risk weights, thereby making firms’ capital ratios more consistent and comparable.
Phil explains that this landmark package is the first to be designed by the PRA outside the EU. In keeping with the UK’s status as a global financial centre, the PRA proposes an approach that maintains appropriately high standards and is aligned with international standards that it helped to shape. He does not see a trade-off between maintaining these standards and maintaining the UK’s global competitiveness and relative standing. But within that broad approach, the PRA can, and does, propose to make some evidence-based adjustments to tailor the package to the UK market.
Cross cutting publications and updates
Update on the sixth edition of the Regulatory Initiatives Grid
13 December 2022
The Regulatory Initiatives Forum has announced that the sixth edition of the Grid, planned for publication in November 2022, has been delayed to the New Year, in order to take into account recently announced Government measures to build a smarter financial services framework.
Update on the sixth edition of the Regulatory Initiatives Grid
Banking publications and updates
CP15/22 - Remuneration: Ratio between fixed and variable components of total remuneration (‘bonus cap’)
19 December 2022
This CP sets out the PRA’s and FCA’s (jointly, ‘the regulators’) proposed changes to the current requirements concerning the ratio between fixed and variable components of total remuneration (the ‘bonus cap’). Although the regulators have considered the following proposals independently of one another, and in accordance with their statutory objectives, the regulators have decided to consult jointly to avoid unnecessary duplication. The proposals in this CP would result in the removal of the current bonus cap requirements, through:
- changes to the Remuneration Part and the Disclosure (CRR) Part of the PRA Rulebook (Appendix 1 and Appendix 4), and to Senior Management Arrangements, Systems and Controls (SYSC) 19D: Dual-regulated firms Remuneration Code that is part of the FCA’s Handbook (Appendix 2); and
- updates to the PRA’s Supervisory Statement (SS)2/17 ‘Remuneration’ (Appendix 3).
PS11/22 – Margin requirements for non-centrally cleared derivatives: Amendments to BTS 2016/2251
15 December 2022
This PRA and FCA PS provides feedback to responses to CP 11/22 – ‘Margin requirements for non-centrally cleared derivatives: Amendments to BTS 2016/2251’. It also contains the PRA’s and FCA’s final policy, in the form of amendments to Binding Technical Standards (BTS) 2016/2251.
PS11/22 – Margin requirements for non-centrally cleared derivatives: Amendments to BTS 2016/2251
Insurance publications and updates
PS12/22 – Insurance special purpose vehicles: Further updates to authorisation and supervision
16 December 2022
This PS provides feedback to responses to CP 10/22 – ‘Insurance special purpose vehicles: Further updates to authorisation and supervision’. It also contains the PRA’s final policy, as follows:
- updated Supervisory Statement (SS) 8/17 – ‘Authorisation and supervision of insurance special purpose vehicles’.
PS12/22 – Insurance special purpose vehicles: Further updates to authorisation and supervision
Internationally Active Insurance Groups (IAIGs) headquartered in the UK
16 December 2022
We have updated the list of Internationally Active Insurance Groups (IAIGs) headquartered in the UK as follows:
- Aviva plc
- British United Provident Association Limited
- Legal & General Group Plc
- M&G plc
- Phoenix Group Holdings plc
IAIGs are the focus of the International Association of Insurance Supervisors (IAIS) Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame). We have identified UK IAIGs in accordance with the criteria set out in ComFrame (CF 23.0.a and CF 23.0.b) for the purpose of the Insurance Capital Standard (ICS) version 2.0 for the Monitoring Period. The Monitoring Period is intended as a period of stability during which the IAIS will monitor the performance of the ICS. It is not intended for monitoring the capital adequacy of IAIGs (ie the ICS will not trigger supervisory actions, and IAIGs need not manage their business to the ICS), or for third party use.
This list is for informational purposes and should be used only in conjunction with ComFrame. This list may be subject to change.
More information
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European and International developments – readers are referred to the following websites: