Emma RadmorePRA has published a policy statement updating its capital rules. Under the new rules and supervisory statement:
- PRA is replacing the UK Technical Standards for own funds requirements and replicated it in its Rulebook to align with updates to the CRR; and
- PRA updates SS7/13 to enhance the quality of capital instruments issued by firms, simplify procedures and clarify PRA expectations in relation to permissions to reduce own funds instruments.
Following consultation, PRA has clarified that once permission has been received, the general prior permission amount should be deducted from own funds when there is sufficient certainty regarding the transaction, and has introduced an expectation that firms update PRA every quarter on transactions undertaken under that permission.
The changes will take effect on 1 January 2023/