Top news and publications
News and speeches
Competing for growth – speech by Sam Woods
17 October 2024
Given at the Annual City Banquet, Mansion House
In his speech ‘competing for growth’, Sam Woods explains how the PRA is supporting the UK’s economic growth and international competitiveness, while maintaining financial stability.
Competing for growth − speech by Sam Woods
The PRA holds internal ratings based (IRB) mortgage roundtable
16 October 2024
The PRA held a roundtable meeting on the IRB approach for mortgage exposures, for PRA-regulated firms with, or interested in seeking, an IRB permission for mortgage exposures, on 30 September 2024 at UK Finance.
The PRA holds IRB mortgage roundtable
CP7/24 – The Strong and Simple Framework: The simplified capital regime for Small Domestic Deposit Takers (SDDTs) – webinar briefing
3 October 2024
The PRA hosted a webinar to provide small firms with an overview of the recent Strong and Simple consultation paper (CP) 7/24 – The Strong and Simple Framework: The simplified capital regime for Small Domestic Deposit Takers (SDDTs). The presentation slides and recording of the presentation can be viewed on the Strong and Simple webinar event page.
Cross cutting publications and updates
PS17/24 – Responses to CP6/24: OCP policy statement
31 October 2024
This Prudential Regulation Authority (PRA) policy statement (PS) provides feedback to responses the PRA received to consultation paper (CP) 6/24 – Occasional consultation paper: April 2024. It also contains the PRA’s final policy, as follows:
- amendments to the Disclosure (CRR) Part of the PRA Rulebook (Appendix 1);
- amendments to the Reporting (CRR) Part of the PRA Rulebook (Appendices 1 and 2);
- amendments to the Regulatory Reporting Part of the PRA Rulebook (Appendix 2);
- amendments to the Glossary of the PRA Rulebook (Appendix 2); and
- the addition of a new Rule 9.5A to the Policyholder Protection Part of the PRA Rulebook (Policyholder Protection) (Appendix 3).
This PS also provides feedback to responses in relation to a proposal in CP6/24, which was a joint consultation with the Financial Conduct Authority (FCA) (FCA Consultation paper 24/10). It also contains PRA’s and FCA’s final policy in the form of amendments to Binding Technical Standards (BTS) 2016/2251 (Appendices 7 and 8).
The implementation date for the rules covered by this PS is 4 November 2024.
The amendments to BTS 2016/2251 will be effective on 1 November 2024, which is when the final Technical Standards instrument by the PRA and FCA comes into force.
PS17/24 – Responses to CP6/24: OCP policy statement
CP13/24 – Remainder of CRR: Restatement of assimilated law
15 October 2024
This CP sets out the PRA’s proposals to restate the relevant provisions in the assimilated Capital Requirements Regulation No 575/2013 (the CRR) in the PRA Rulebook and other policy material such as supervisory statements or statements of policy.
The PRA also proposes to update the credit ratings mapping tables in some assimilated Technical Standards and to restate them in the PRA Rulebook.
This consultation closes on 15 January 2025.
Banking publications and updates
CP14/24 – Large Exposures Framework
21 October 2024
The prudential framework for large exposures (LE) complements the risk-weighted capital requirements by aiming to protect firms from large losses resulting from the sudden default of a single counterparty or groups of connected counterparties (GCC). As a result, it helps to maintain and enhance the safety and soundness of firms and the financial system within which they operate.
This CP sets out the PRA’s proposals to implement the remaining Basel large exposures standards (LEX standards). The proposals include:
- removing the possibility for firms to use internal model (IM) methods to calculate exposure values to securities financing transactions (SFTs); and
- introducing a mandatory substitution approach to calculate the effect of the use of credit risk mitigation (CRM) techniques.
This CP is relevant to PRA-authorised UK banks, building societies, PRA-designated investment firms, PRA-approved holding companies, PRA-designated holding companies and other CRR consolidation entities.
This consultation closes on Friday 17 January 2025.
Bank of England Banking Taxonomy v3.7.0 Public Working Draft 2 (PWD2)
9 October 2024
On Wednesday 9 October 2024 the PRA published the Banking Taxonomy v3.7.0 Public Working Draft 2 (PWD2), setting out the technical implementation of the proposals outlined in PS17/23 – Implementation of the Basel 3.1 standards near-final part 1 and PS9/24 – Implementation of the Basel 3.1 standards near-final part 2.
Feedback is requested to uktaxonomypwdfeedback@bankofengland.co.uk by Friday 15 November 2024.
Banks, building societies and investment firms
CP12/24 – Resolution assessments: Amendments to reporting and disclosure dates
8 October 2024
This CP sets out the PRA’s proposal to make amendments to PRA rules and expectations in respect of firms’ reporting and disclosure obligations pertaining to resolution assessments.
Currently, firms are required to carry out an assessment of their preparations for resolution and submit a report to the PRA every two years, by the first Friday in October. Each firm must then publish a summary of its report by the second Friday in June of the following year. The PRA is proposing to amend rules 3.1 and 4.1 of the Resolution Assessment Part of the PRA Rulebook so that the timing of future submissions and disclosures would no longer be fixed to two-year cycles. Firms would continue to be subject to reporting and disclosure obligations on their resolvability but on a periodic basis.
The CP also proposes to amend supervisory statement 4/19 to reflect the updated rules and to set out expectations to firms about the timing of future submissions and disclosures. The PRA’s expectations as to the reporting and disclosure dates would be communicated in advance of each cycle, taking account of the need to provide time for firms to plan and prepare their reports.
This CP is relevant to UK banks and building societies with £50 billion or more in retail deposits on an individual or consolidated basis, as at the date of their last accounting reference date.
This consultation closes on Friday 8 November 2024.
CP12/24 – Resolution assessments: Amendments to reporting and disclosure dates
Insurance publications and updates
Statement by the Prudential Regulation Authority on proposed permission requirement for the calculation of loss-absorbing capacity of deferred taxes under the standard formula
23 October 2024
Bank of England Insurance Taxonomy v2.0.1
10 October 2024
The PRA published the Bank of England Insurance Taxonomy v2.0.1 on 10 October 2024, which must be used for reporting with a reference date of 31 December 2024 or onwards. Taxonomy v2.0.1 has been published in line with the final reporting templates and instructions which will be published as part of the policy statement in response to consultation paper (CP) 5/24 – Review of Solvency II: Restatement of assimilated law. We therefore do not expect to publish any further taxonomy updates for the policy statement to CP 5/24 in 2024.
The taxonomy v2.0.1 is not backwards compatible with the taxonomy v2.0.0, meaning that instance documents created using taxonomy v2.0.0 will not work with the taxonomy v2.0.1. Therefore, industry and software vendors are expected to commence technical implementation activities using taxonomy v2.0.1. Specifically, we would encourage software vendors to adopt the new taxonomy at the earliest opportunity to ensure that firms can participate in user acceptance testing in the second half of November.
Also in mid-November, the PRA is planning for an industry roundtable to discuss the Bank of England Insurance Taxonomy v2.0.1, published on 10 October 2024. The exact date and details will be shared on the Solvency II webpage in due course.
More information
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