On 12 September 2019, the PRA published Policy Statement 17/19: Supervising international banks: Revision of the Branch Return (PS17/19). PS17/19 is relevant to all existing and prospective PRA-supervised branches of deposit takers and PRA-designated investment firms which are not UK headquartered firms. In PS17/19 the PRA provides feedback to responses to Consultation Paper 8/19: Supervising international banks: Revision of the Branch Return (CP8/19) (our earlier blog is here). It also contains the PRA’s final…

On 9 September 2019, the PRA issued Consultation Paper 20/19: Regulatory capital instruments – update to pre-issuance notification requirements (CP20/19). In CP20/19 the PRA sets out proposals to amend the Pre-Issuance Notification (PIN) regime applicable to PRA-authorised Capital Requirements Regulation (CRR) firms. Appendix 1 of CP20/19 contains proposed amendments to the PIN regime as set out in the Definition of Capital Part of the PRA Rulebook. The proposals reflect the adoption of amendments to Part…

On 9 September 2019, the European Banking Authority (EBA) announced that it intends to provide clarity on the appropriate treatment of legacy instruments at the end of 2021. When the Capital Requirements Regulation (CRR) entered into force, grandfathering provisions were introduced to ensure that institutions had sufficient time to meet the requirements set out by the new definition of own funds. Certain capital instruments that, at the time, did not comply with the new definition…

On 6 September 2019, the following Brexit statutory instruments were published: The Capital Requirements (Amendment) (EU Exit) Regulations 2019 together with an explanatory memorandum. The statutory instrument is intended to ensure that the Capital Requirements Regulation (CRR), as amended by the Capital Requirements Regulation II (CRR II), continues to operate effectively once the UK has left the EU. The relevant elements of the CRR II that the statutory instrument deals with predominantly relate to…

On 2 September 2019, the European Banking Authority (EBA) updated its Interactive Single Rulebook and Q&A tool on the “simple, transparent and standardised” (STS) Securitisation Regulation. The update allows users to review all the EBA’s final technical standards and guidelines associated with the Securitisation Regulation by navigating through the legislation on an article by article basis. The inclusion of these pieces of EU legislation on the Q&A tool also allows users to submit any questions…

On 28 August 2019, the European Banking Authority (EBA) published the following: a report on funding plans. The purpose of the report is to assess the feasibility of EU banks’ funding plans submitted for the banking system in the EU. The EBA’s findings include, among other things, that the total assets of banks increased in 2018 by 0.5% compared to their 2017 levels and banks expect further growth over the next three years; banks plan…

On 7 August 2019, the PRA published Policy Statement 16/19: Regulatory reporting: EBA Taxonomy 2.9 (PS16/9). PS16/9 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 EEA states and non-EEA countries, or to insurance firms. In PS16/9 the PRA sets out the final rules updating the reporting requirements for ring-fenced bank reporting, Capital+ reporting and the scope of…