Cash Ratio Deposits (effective immediately)
Cash Ratio Deposits (CRDs) are non-interest bearing deposits lodged with the Bank of England by eligible institutions (i.e. banks and building societies), who have reported average eligible liabilities (ELs) in excess of £600 million over a six-month calculation period. The level of each institution’s CRD is calculated twice yearly (in May and November) at 0.18% of average ELs in excess of £600 million over the previous six end-calendar months.
The next adjustment to CRDs is due to take place on Monday 1st June 2015, based on data reported in Form ELS item £A (total eligible liabilities) for the months of November 2014 to April 2015. The deadline for revisions to ELs to be reflected in the June adjustment is 5pm on Tuesday 19th May 2015; call notices will be issued shortly thereafter. Amendments to Form ELS item £A must be re-submitted via OSCA.
Institutions reporting form PB, in order to submit form BT on working day 12, are reminded that form ELS must be submitted on time. Please also be aware that the final deadline for revisions to form ELS for the June CRD adjustment falls on working day 12.
If there are any queries relating to CRDs, please contact the compliance team on +44 (0) 20 3461 5360 or email firstname.lastname@example.org.
Treatment of UK holding companies on Forms PL, BG, FI and FO (effective from Q1 2016 reporting)
With effect from Q1 2016, the treatment of UK holding companies will change on forms PL, BG, FI and FO.
Currently the guidance within the form definitions states that if any inward or outward direct investments are held through an intermediary holding company located in the UK, the holding company should be ‘looked/channelled’ through to the immediate non-resident subsidiary or associate.
With effect from Q1 2016, if any inward or outward direct investments are held through an intermediary holding company in the UK, the holding company should NOT be ‘looked/channelled through’.
Form definitions from Q1 2016 for forms PL, BG, FI and FO reporting have been amended to clarify this change. If you have any queries relating to this change, please contact Elias Razak on +44 (0) 207 601 5797 or email email@example.com.
Reclassification of Network Rail (effective July 2015 Reporting)
In December 2013, the Office for National Statistics announced its decision to reclassify Network Rail to Central Government and this change is now being implemented in the National Accounts. Reporters are asked to reclassify Network Rail from private non-financial corporations to central government (S.1311) from July 2015 data.
If the reclassification results in changes of more than £10 million then please email firstname.lastname@example.org with the details.
For further information, please see the ONS website.
If you have any queries relating to these changes, please contact the Money and Credit Group on +44 (0) 20 3461 5361 or email email@example.com.
Removal of item PLRD (expenditure on research and development) from the new Form PL
The new Form PL, effective from 2016 Q1 reporting, uploaded to the Bank of England website with SN2015/01, will no longer look to collect expenditure on research and development. Item PLRD will be completely removed from the form. All other items are unchanged. The definitions, form and validations have been updated accordingly. If you have any queries regarding this, please contact Katrina Farrell on +44 (0) 20 3461 6131 or email firstname.lastname@example.org).
Treatment of negative interest receivable and payable on Form PL for Q1 2015 reporting and Q2 2015 reporting thereafter
For Q1 2015 reporting, where negative interest occurs we request that the interest be netted against any positive interest reported in the relevant box. Should the overall netted amount turn negative, this negative amount should be reported positively in a corresponding receivable/payable box. For example, if there is overall negative interest receivable on loans to non-residents (PL1BM) this should be placed, as positive interest payable, into interest payable on deposits from non-residents (PL2BM).
From Q2 2015 reporting we will remove relevant validations to allow negative amounts to be recorded within interest receivable and interest payable boxes. To allow us to identify relevant boxes we would appreciate any information you can give us. If you believe you have, or may have, negative interest receivable or payable please get in touch to explain where and how this has occurred. Similarly, if you cannot make this change for Q2 2015, please contact us to discuss alternative options.
If you have any queries, or to get in touch, please contact Katrina Farrell on +44 (0) 20 3461 6131 or email email@example.com.
Green Notice (Nil return)