PRA publishes responses to CP13/21 occasional consultation paper

The PRA has published a policy statement (PS25/21) which sets out its final policy on the various proposals it consulted on in occasional paper CP13/21. These proposals included:

For banks, building societies and PRA-designated investment firms

• changes to reporting requirements involving content and formatting changes to Pillar 2 reporting template FSA081 and consequential changes to the PRA’s supervisory statement on Pillar 2 reporting (SS32/15). The PRA’s final policy on these proposals is set out in:
  • Appendix 1: PRA Rulebook: CRR firms: Reporting Pillar 2 (Amendment) Instrument 2021(PRA2021/17);
  • Appendix 2: revised version of SS32/15;
  • Appendix 3: FSA081 template; and
  • Appendix 4: revised FSA081 instructions (all changes to take effect from 1 December 2021).

• changes to reporting requirements to delete a legacy template (FSA042) that is replicated in the PRA Rulebook and FCA Handbook. The PRA also proposed changes to remove various references to LIBOR in preparation for its expected cessation. The PRA’s final policy on these proposals is set out in:
  • Appendix 5: PRA Rulebook: CRR firms, non CRR firms: Regulatory Reporting Amendment Instrument 2021 (PRA2021/16);
  • Appendix 6: revised version of PRA supervisory statement on guidelines for completing regulatory reports (SS34/15);
  • Appendix 7: revised FSA017 instructions; and
  • Appendix 8: revised notes for completion of the MLAR (the deletion of FSA042 will take effect from 10 November 2021 and the changes in respect of the FSA017 instructions and MLAR guidance notes will enter into force on 1 January 2022).

For CRR firms

• a change to the scope of Chapter 4 of the Definition of Capital Part of the PRA Rulebook to refer to “CRR firms” rather than “UK banks”. The final policy is set out in:
  • Appendix 9: PRA Rulebook: CRR firms: Definition of Capital (Amendment) Instrument 2021 (PRA2021/19); and
  • Appendix 10: revised version of SS7/13 (these changes will take effect on 1 January 2022).

For PRA-supervised third country branches

• changes to the branch return. The PRA’s final policy is set out in:
  • Appendix 5: PRA Rulebook: CRR firms, non CRR firms: Regulatory Reporting Amendment Instrument 2021 (PRA2021/16);
  • Appendix 6: revised version of SS34/15;
  • Appendix 11: revised branch return; and
  • Appendix 12: revised reporting guidance for branch return (these changes will take effect on 31 May 2022).

For audit committees of CRR firms, Solvency II firms, the Society of Lloyd’s and managing agents, and auditors of major UK banks and building societies

• a change to a reference in Rule 2.4(5) in the Audit Committee Part and the correction of an error in SS1/16. The final policy is set out in:
  • Appendix 13: CRR Firms and SII Firms: Audit Committee (Amendment) Instrument 2021 (PRA2021/18); and
  • Appendix 14: revised version of SS1/16 (these changes will enter into force on 1 January 2022).