Regulatory reporting: EBA Taxonomy 2.9

Policy Statement 16/19 | Consultation Paper 19/18

Published 7 August 2019

Regulatory reporting: EBA Taxonomy 2.9 - PS16/19

Overview

This Prudential Regulation Authority (PRA) Policy Statement (PS) follows Consultation Paper (CP) 19/18 ‘Regulatory reporting: European Banking Authority Taxonomy 2.9’ (see page 2 of 2). It sets out the final rules updating the PRA reporting requirements for ring-fenced bank reporting, Capital+ reporting and the scope of Financial Reporting (FINREP) to be reported by certain firms that are not currently required under the Capital Requirements Regulation (575/2013) (CRR) to report FINREP. The PRA received no responses to the CP.

This PS is relevant to UK banks and building societies as well as PRA-designated UK investment firms. It is not relevant to UK branches of firms in other European Economic Area (EEA) countries and non-EEA countries, or to insurance firms.

This PS should be read alongside the Implementing Technical Standards Amending Regulation (EU) No 680/2014 on Supervisory Reporting and the associated amending regulation. The FINREP templates and instructions can be found on the European Banking Authority website.

In the CP the PRA proposed the following changes to the reporting requirements contained in the Regulatory Reporting and Glossary Parts of the PRA Rulebook:

update the content of ring-fenced bank template RFB004 to reflect selected changes that the European Banking Authority (EBA) has proposed to FINREP;
update the content of templates PRA101, PRA102, and PRA103 to reflect selected changes that the EBA is proposing, or has previously made to Common Reporting (COREP); and
add new non-performing loan (NPL) templates to the scope of FINREP reporting required from firms that are not currently required under the CRR to report FINREP.

Changes to draft policy

The EBA has made a number of changes to FINREP and COREP following its consultation on amendments to the Implementing Technical Standards (ITS) on supervisory reporting. The PRA has correspondingly made some minor changes to the proposals in CP19/18 in line with the process set out in paragraph 1.10 of that CP.

The additional changes are the:

deletion of the proposed new row 212 on prepayment fees on loans granted in RFB004g;
promotion of the proposed new sub-row 040 on taxes and duties in RFB004i from an ‘of which’ item of Information Technology expenses to a stand-alone row; and
addition of the new rows on the impact of stricter prudential requirements under Article 124 and 164 of CRR to Capital + templates PRA 101 and PRA 102. This has a minor effect on PRA 101 and no effect on PRA 102 in which the new cell is shaded grey for non-completion.

The changes ensure that the reporting templates continue to align with firms’ COREP and FINREP reporting.

The EBA has also made a series of changes to the content of the new FINREP NPL templates to simplify and streamline these post-consultation. A small number of new rows were added to the new FINREP templates F23 and F26. The PRA does not consider these changes to alter the relevance of these templates to the scope of the FINREP extension proposed in the CP and these changes are not considered to change the nature of the templates consulted on. The PRA does not consider these changes to impact the cost-benefit analysis in CP19/18.

Implementation

The changes to the PRA Rulebook for Capital + templates PRA 101, PRA 102 and PRA 103 will take effect on Sunday 1 March 2020.

The changes to the PRA Rulebook and SS34/15 ‘Guidelines for completing regulatory reports’ for ring-fenced bank template RFB004, and the scope of FINREP reporting required from firms that are not currently required under the CRR to report FINREP, will take effect on Monday 1 June 2020.

The policy set out in this PS has been designed in the context of the current UK and EU regulatory framework. The PRA has assessed that the policy will not be affected in the event that the UK leaves the EU with no implementation period in place.

As these changes relate to reporting they should be read in conjunction with SS2/19 ‘PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after the UK’s withdrawal from the EU’.

Appendices

Some of the templates listed above subsequently been superseded, and will have been marked as such; for the current versions of all reporting templates, accompanying instructions, and their effective dates, see the Banks, building societies and investment firms page.

Note: All content for this PS is included on this webpage. If you would like a PDF version of the PS, please use the ‘Convert to PDF’ button available below.

Regulatory reporting: EBA Taxonomy 2.9 - CP19/18

Update 12 November 2018: Paragraphs 3.7 and 3.8 have been updated to provide further information on the cost benefit analysis.

Published 12 September 2018

Overview

In this consultation paper (CP), the Prudential Regulation Authority (PRA) sets out proposals to update certain PRA reporting requirements to reflect relevant proposals made by the European Banking Authority (EBA) in its open consultations on changes to the Implementing Technical Standards on Supervisory Reporting (‘Supervisory Reporting ITS’).

This CP is relevant to UK banks and building societies. It is not relevant to PRA-designated UK investment firms, to UK branches of firms in other European Economic Area (EEA) countries and non-EEA countries, or to insurance firms.

This CP should be read alongside the open EBA consultations on changes to the Supervisory Reporting ITS, as well as the Regulatory Reporting Part of the PRA Rulebook and Supervisory Statement (SS) 34/15.

Summary of proposals

This CP proposes a number of changes to the PRA reporting requirements as a result of the EBA’s proposals to update the Supervisory Reporting ITS. These proposed changes will enhance PRA reporting and maintain consistency with the EBA’s reporting requirements.

The proposals in this CP cover existing PRA reporting templates for ring-fenced banks (RFBs), statement of profit and loss (P&L), and forecast capital data (currently known as Capital+). The CP also contains a proposal to extend the scope of new Financial Reporting (FINREP) templates to firms that are not required to report using FINREP templates under Article 99 of the Capital Requirements Regulation (575/2013) (CRR). This proposed extension consists of the non-performing loan (NPL) and forborne exposure (FBE) templates contained in the EBA’s consultations.

Responses and next steps

This consultation closed on Wednesday 12 December 2018. Please address any comments or enquiries to CP19_18@bankofengland.co.uk.

Final PRA policy will be made after the finalisation of the proposed changes to the Supervisory Reporting ITS. Any modifications to the proposals made by the EBA following its consultation process will be considered and where these do not differ substantively from the proposals made in this CP, these changes will be implemented by the PRA in the form contained in the finalised ITS.

Consultation Paper 19/18