Guidance

SS2/19 – PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after the UK’s withdrawal from the EU

Chapter

General approach

Printed on: 02/06/2024

Rulebook at: 01/01/2022

2

General approach

2.1

Table A sets out the various different types of EU-based references, and a default approach to how these should be interpreted.

  • 01/01/2022

Table A: General approach to interpretation of EU-based references

Type of reference Default interpretation
Reference to EU regulation This should be read as a reference to the onshored version of the regulation. References to CRR refer to onshored CRR or PRA rules.
Reference to EU directive This should be read as a reference to the UK legislation; PRA or Financial Conduct Authority (FCA) rules; or the UK, PRA or FCA processes that give effect to the directive, as amended on IP completion day. In some cases firms may also find it helpful to refer to the text of the EU directive as it stands on IP completion day, to provide additional context.
Reference to EU technical standard This should be read as a reference to the onshored version of the technical standard.
Stand-alone reference to the European Union or EU (ie not in relation to legislation); or the European Economic Area or EEA This should be read as a reference to the UK, except where otherwise noted below.
Reference to Member State, Member States or home Member State This should be read as a reference to the UK, except where otherwise noted below.
Reference to third country This should be read as a reference to a non-UK country.
Reference to Euros

Where Euro is given as an example of a currency, and the same treatment is applied to other currencies (eg US dollars), no change in interpretation is required.

Any reference to a threshold set in Euros will continue to apply.

In any other case, further details can be found in Chapters 3, 4 and 5 of this SS of how this should be interpreted.
Reference to definition based on CRR or Solvency II requirements In some cases, reporting definitions are written to mirror text in level one legislation (either in addition to, or instead of, including a direct reference to the legislation). Where this happens, institutions should also refer to the relevant onshored legislation or PRA rules to ensure they are interpreting the reporting requirements properly. Where this differs to the text in the technical standard, the definition in the relevant nationalised legislation or PRA rules should take priority.
Reference to accounting standards or to a specific accounting standard as endorsed by the EU (eg International Financial Reporting Standards (IFRS) 9) This should be read as a reference to the implementation of the corresponding accounting standard(s) that is in place in the UK after IP completion day.
Reference to statistical definitions set out by European bodies outside of legislation (eg by the European Central Bank (ECB), Eurostat or European Commission), or to nonbinding materials such as guidelines or Q&As produced by the European Banking Authority (EBA) or the European Insurance and Occupational Pensions Authority (EIOPA).

These should be read as a reference to the definitions or materials as they stand on IP completion day.

Example occurrences:
References in CRR FINREP templates and instructions to statistical definitions set out in the ECB BSI regulation.1
References in CRR FINREP templates and instructions to the SME definition set out in the Commission Recommendation of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises.2
References in CRR COREP instructions to the definition of ISO code 3166-1alpha-2 set out in Eurostat’s ‘Balance of Payments Vademecum’.3
References to lists or information produced by European bodies

This should be read as a reference to the equivalent list or information produced by a UK body after the end of the transition period.

Example occurrences:
The CRR COREP instructions for C17.01 and C17.02 (Annexes I and II of PRA Rulebook, Reporting (CRR) Part, Templates and Instructions) contain references to supervisory disclosures published on the EBA website, and the gross domestic product at market prices data published by Eurostat. These references should be read as a reference to the corresponding disclosure produced by the PRA,4 and the corresponding data published by the Office for National Statistics.
The instructions for Solvency II templates S06.02, S08.01, S30.02, S30.04, S31.01, S31.02 and S37.01 include a list of credit rating agencies as registered or certified by the European Securities and Markets Authority (ESMA). This should be read as a reference to the list of credit rating agencies as registered or certified within the UK.
Reference to ‘freedom to provide services’

On the basis that UK firms will no longer write business under the Freedom to Provide Services in the EU after IP completion day:

  • Any data relating to business performed through freedom to provide services will be a nil entry after IP completion day.
    • Example occurrences: S04.01 and S04.02 Solvency II templates.
  • Any references to the country where the freedom to provide services notification was made for the purposes of identifying the location where a contract is entered into should be disregarded.
    • Example occurrences: S05.02, S12.02 and S17.02 Solvency II templates.
  • 01/01/2022