Published 17 June 2019
Pillar 2 liquidity: Updates to the framework - PS13/19
Overview
This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 6/19 ‘Pillar 2 liquidity: Updates to the framework’. It also contains the PRA’s final policy as follows:
- updates to the Regulatory Reporting Part of the PRA Rulebook (Appendix 1 – see below);
- updates to Statement of Policy (SoP) ‘Pillar 2 liquidity’ (Appendix 2);
- updates to Supervisory Statement(SS) 24/15 ‘The PRA’s approach to supervising liquidity and funding risks’ (Appendix 3);
- updates to SS34/15 ‘Guidelines for completing regulatory reports’ (Appendix 4); and
- updates to PRA110 template and reporting instructions (appendices 5 and 6 – available on the Regulatory reporting - banks, building societies and investment firms page).
This PS is relevant to UK banks, building societies, PRA-designated investment firms, and non-EU EEA banks, referred to collectively as ‘firms’ in this PS.
Summary of responses
The PRA received nine responses to CP6/19. Respondents did not express concerns on most of the proposals, but did raise some issues and requests for clarifications. The PRA’s feedback to these responses and final decisions are set out in Chapter 2.
Implementation
Annex A of the rule instrument amending the Regulatory Reporting Part of the PRA Rulebook (Appendix 1), the updated SoP (Appendix 2), the updated SS24/15 (Appendix 3), and the updated SS34/15 (Appendix 4) will take effect from Monday 1 July 2019.
The updated PRA110 template and reporting instructions (appendices 5 and 6) and Annex B of the rule instrument amending the Regulatory Reporting Part of the PRA Rulebook (Appendix 1) will take effect from Wednesday 1 January 2020.
The policy 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 be affected in the event that the UK leaves the EU with no implementation period in place.
The final SoP, SS24/15 and SS34/15 attached to this PS should be read in conjunction with SS1/19 ‘Non-binding PRA materials: The PRA’s approach after the UK’s withdrawal from the EU’.
The changes being made to the Regulatory Reporting Part of the Rulebook 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’.
Policy Statement 13/19 Published 19 March 2019
Pillar 2 liquidity: Updates to the framework - CP6/19
Overview
In this Consultation Paper (CP), the Prudential Regulation Authority (PRA) sets out proposals for regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework. The proposed changes would be implemented through amendments to:
- the Regulatory Reporting Part of the PRA Rulebook; (Appendix 1);
- Statement of Policy (SoP) ‘Pillar 2 Liquidity’ (Appendix 2);
- Supervisory Statement (SS) 24/15 ‘The PRA’s approach to supervising liquidity and funding risks’ (Appendix 3);
- SS34/15 ‘Guidelines for completing regulatory reports’ (Appendix 4);
- PRA110 reporting template (Appendix 5); and
- PRA110 reporting instructions (Appendix 6).
This CP is relevant to UK banks, building societies, PRA-designated investment firms, and non-EU EEA banks.
Implementation
The proposed implementation date for Annex A in the draft PRA Rulebook (Appendix 4) is 1 July 2019. The proposed implementation date for the updated PRA110 reporting template and instructions, and for Annex B in the draft PRA Rulebook is 1 January 2020.
Responses and next steps
This consultation closed on Friday 19 April 2019. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP6_19@bankofengland.co.uk.
The PRA considers that a consultation period of one month is justified in light of the relatively minor impact of the proposed changes, and the benefit in providing firms with a longer period to implement the proposed changes to the PRA110 template, if these are adopted following consultation.