Tag Archives: PRA
PRA is proposing changes to its Supervisory Statement on credit risk mitigation, to clarify how financial collateral is eligible as funded credit protection under the CRR. The CRR sets criteria for recognising collateral as eligible for CRM, which include that “the credit quality of the obligor and the value of the [financial] collateral shall not […]
The FCA has published a ‘Dear CEO’ letter in which it provides clarity about the communication and approval of financial promotions by regulated and unregulated businesses. The FCA has published the letter after it has recently become aware that firms have been issuing financial promotions which suggest or imply that all the activities they undertake are […]
As part of its preparation for onshoring EU legislation, the PRA has published CP32/18. This consultation paper contains two consultations: the first sets out the PRA’s proposals regarding the PRA Rulebook and the Binding Technical Standards (BTS) that are to come within the PRA’s remit; the second relates to BTS that will come within the […]
The BoE and the PRA have published consultation papers on resolvability and resolution assessments for certain firms. PRA CP31/18 sets out proposed rules that would require relevant firms to report to the PRA on their assessment of their preparations for resolution, and publicly disclose summaries of those reports. The BoE consultation paper includes proposals on […]
PRA has published the Q3 2018 figures for skilled persons reports commissioned. There have been 3 on controls and risk management frameworks and one in the prudential insurance lot.
PRA has updated its Policy Statement relating to the Systemic Risk Buffer. The update follows consultation in response to which it received no comments.
PRA and FCA are consulting on new reporting requirements for mortgage lenders and home finance administrators. Both regulators think there are areas in which they need data from firms additional to that which is currently being reported. The changes will affect the MLAR and PSD returns. Key proposals include that: mortgage administrators should submit PSD […]
PRA has published a policy statement to its second consultation on extending the SMCR to insurers. Following FCA’s finalisation of its rules on the extension, PRA now confirms it had no responses to its consultation and has made no changes to the rules it consulted on. As a result, it has now made the rules, […]
The PRA has issued a direction that confirms the process, including timings, for notifications by incoming EEA firms that wish to continue operating in the UK after Brexit (in the event of no applicable transitional agreement being in place).
PRA has updated its “approach” documents in relation to banking and insurance supervision. Key changes to the previous versions include: an update on the changes to supervisory approach following implementation of the SMR and SIMR (and, in the case of insurers, looking forward to the SIMR changing to the SMCR at the end of the […]
Bank of England communications on approach to financial services legislation under EU (Withdrawal) Act
The Bank of England has published a package of documents covering various aspects of contingency measures required in the event of there being no applicable Brexit transition period agreed. The publications include: ‘Dear CEO’ letters from the PRA to all PRA authorised and regulated firms and incoming EEA firms, and from Bank of England to […]
The latest Occasional Consultation Paper from the PRA covers changes to the Rulebook, Supervisory Statements, Statements of Policy and Forms, in the following areas: Reporting – amendment to the Branch Return Form and amendments to the reporting templates for calculating risk based levies Ring fencing – imposition of financial penalties Written reports by external auditors to […]
On 18 October 2018, the PRA published responses to its consultation paper (CP) 18/18 ‘Strengthening accountability: implementing the extension of the SM&CR to insurers’. The policy statement (PS) 26/18 also includes amendments to the final rules for implementing the regime to insurers and corrections to the Insurance General Application Part of the PRA Rulebook. Background […]
PRA is consulting on a draft supervisory statement setting out how it expects banks and insurers to manage the financial risks from climate change. The statement sets out how effective governance, risk management, scenario analysis and disclosures can be used to address the risks and is intended to build on previous statements and embed appropriate […]
PRA has published updated Supervisory Statements on: regulatory reporting, internal model outputs, and on ORSA and the ultimate time horizon for non-life firms. The new policies take effect for all financial year-ends on or after 31 December 2018; internal models – modelling of the volatility adjustment and am amended SS on internal models – assessment, […]
Treasury has set out its plans for a temporary transitional tool for the UK regulators to use that will enable them to phase in the requirements for UK firms that will change under the raft of onshoring legislation consequent on Brexit. The EU Withdrawal Act provides the enabling powers for Treasury to make the various […]
PRA is consulting on changes to various forms relating to: passporting change in control ISPVs and Notifications It asks for comments by 1 November.
The PRA has published a report examining the impact of climate change on banks in terms of financial risk implications. The report notes that 70% of banks recognise that climate change poses financial risks to their business model, for example, and immediately, exposures to mortgaged homes at risk of flooding or by investments in countries […]
The FCA and PRA have published a joint ‘Dear CEO’ letter sent to major banks and insurers supervised in the UK regarding the preparations and actions they have taken to manage the transition from the London Interbank Offered Rate (LIBOR) to alternative risk-free rates (RFRs). The purpose of the letters is to seek assurance that firms’ senior […]
The PRA has published the second part of its consultation on the extension of SM&CR to insurers. These proposed amendment to its rules consist of ‘technical consequential changes’ and ‘minor administrative amendments’ arising from this extension, for example refining the scope of those individuals for whom insurers may consider seeking approval for a PRA senior […]
The August edition of the PRA’s Regulatory Digest includes: news about a New Insurer Start-up Unit. This is a joint initiative with the FCA. The dedicated page on the Bank of England’s website includes a guide to becoming an insurer in the UK, and also a call for feedback on perceived barriers to entry in […]
The PRA has today published its consultation paper (CP) 17/18 on the definition of default. The CP follows the European Banking Authority’s (EBA) Opinion on the implementation of the regulatory review of internal rating based (IRB) models. Background The EBA put together a list of regulatory products for the IRB framework review, with the “aim […]
On 26 July, the PRA published its policy statement (PS) 21/8 ‘Solvency II: Changes to reporting format’. The PS is a result of the PRA’s consultation paper (CP) 11/18, in which it proposed to change the reporting format for: national specific templates; internal model outputs; market risk sensitivities; and standard formula reporting for firms with […]
Treasury Committee asks PRA to work with insurance industry in relation to areas covered by Solvency II
In a letter to the Chief Executive of the PRA regarding Solvency II, the House of Commons Treasury Committee has asked the PRA to consider challenges raised by industry in a number of areas, including to the current risk model change process and reporting requirements. Furthermore, in the light of Brexit and while acknowledging it […]
On 6 July, the PRA provided feedback to responses to its Consultation Paper (CP) 2/18 “Changes in insurance reporting requirements” in Policy Statement (PS)16/18. CP2/18, published in January 2018, set out the PRA’s proposals to change the regulatory reporting requirements for SII firms (and mutuals). The proposals were developed by the PRA as part of […]
The PRA updated a number of its Supervisory Statements (SSs) on 4 July 2018 to reflect changes in terminology, following the publication of policy statement 15/18 “Strengthening individual accountability in insurance: Extension of the Senior Managers and Certification Regime to insurers”. A list of those SSs can be found below. SS28/15 “Strengthening individual accountability in […]
On 4 July 2018, the PRA published policy statement (PS)15/18 in response to Consultation Paper (CP) 14/17 ‘Strengthening individual accountability in insurance: extension of the Senior Managers and Certification Regime to insurers’ and CP 28/17 ‘Strengthening accountability: implementing the extension of the SM&CR to insurers and other amendments’. As well as feedback to responses to […]
PRA has published a policy statement together with updated supervisory statements on changes to its large exposures framework. PRA received 5 responses to its consultation paper, which supported the additional guidance. Most also supported the proposals relating to the non-core large exposures group limit and the exemption of certain exposures at UK consolidated level, although […]
Sam Woods has written a “Dear CEO” letter to CEOs of all dual-authorised firms on exposures to crypto-assets. PRA understands firms may already have limited exposure to such assets, and is writing to clarify its expectations of how firms behave, particularly in view of Fundamental Rules 3, 5 and 7. The letter sets out what […]
The PRA has issued PS12/18 and SS5/18, which sets out the PRA’s expectations of a firm’s risk management and governance of algorithmic trading. The SS applies to all algorithmic trading activities of a firm, including in respect of unregulated financial instruments such as spot foreign exchange. It should be read in conjunction with other applicable requirements, including […]
Following its consultation on effective financial management and planning for insurance firms and groups, the PRA has now published its final policy statement PS10/18, and Supervisory Statement SS4/18, ‘Financial management and planning by insurers’. The Supervisory Statement (which has been modified in the light of responses to the consultation) includes a framework for the: development […]
PRA has published a policy and supervisory statement setting out its expectation of the model risk management practices firms should adopt when using stress test models. It expects firms to apply the principles proportionately, with the larger firms applying them in full. The principles require banks: to have an established definition of a model, and […]
Barclays has confirmed that FCA and PRA have issued draft warning notices in respect of their investigations into the the bank and its group CEO Jes Staley in respect of an attempt by Mr Staley to identify the author of an anonymous letter. The regulators propose a fine for breach of Individual Conduct Rule 2 […]
The PRA has published a ‘Dear CEO‘ letter which addresses capital extraction requests from insurance firms in run-off, and firms not supplying sufficient information to the PRA. It reminds firms of the need to closely consider Supervisory Statement 4/14 on capital extractions, and sets out illustrations of the types of information they expect to see […]
The FCA and the PRA have both published their business plans for 2018/2019. The FCA’s business plan shines a spotlight on consumer protection, including in relation to pension products and high-cost credit, as an area of concern for the forthcoming year, as well as ongoing programmes such as Brexit, and firms’ culture and governance (including […]
PRA has published a report in response to the Treasury Committee’s inquiry into Solvency 2. The response is split into four parts: Part 1: Overview of the UK insurance industry and the rationale for the prudential regulation of insurers. Part 2: Solvency 2 and the UK insurance sector, including the development of Solvency 2. Part 3: […]
Sam Woods, Deputy Governor, Prudential Regulation and Chief Executive Officer of PRA delivered a speech entitled ‘Looking out for the policyholder’ at the ABI’s annual conference. The speech focused on the policyholder, competition and competitiveness and Solvency 2 reform. With regard to PRA’s secondary objective to facilitate effective competition, Mr Woods provided practical examples of steps […]
PRA has published an update on responses to certain parts of its CP18/17 Occasional consultation. The update explains how PRA prepared to bring into force rulebook changes relating to the implementation of the Benchmark Regulation, MiFID 2 and the IDD, pending completion of relevant legislative changes.
PRA has published a policy statement on strengthening individual accountability in insurance: optimisations to the SIMR. The policy statement follows on from an ealier consultation (CP8/17) and includes: feedback on the proposed optimisations to the SIMR and PRA’s final policy; feedback on PRA’s proposals for diversity at boards of insurers and PRA’s final policy; the […]
The PRA has published a consultation paper on amending the effective date of its rules implementing the IDD, in response to proposals from the European Commission to push IDD implementation back from 23 February 2018 to 1 October 2018. Proposals to amend the effective date to align with the Commission proposal do not represent a […]
As part of its review into the implementation of Solvency 2, PRA has published a consultation paper on changes to insurance reporting requirements. The changes are designed to reduce the burden for Solvency 2 firms and mutuals while maintaining PRA’s ability to meet its statutory objectives and to supervise firms. The consultation paper is relevant to […]
PRA is consulting on changes to its Supervisory Statement 9/13 to reflect its expectations for reporting in the minimum requirement for own funds and eligible liabilities. It seeks comments by 9 April.
As part of its review into Solvency 2, PRA has published a consultation paper which proposes updated expectations of firms in respect of: the model change process set out in Supervisory Statement (SS) 12/16 ‘Solvency II: Changes to internal models used by UK insurance firms’; and the internal model change policies set out in SS17/16 […]
PRA has sent a letter to firms that were involved in the 2017 general insurance stress test and explained that its main findings were: the UK general insurance sector as a whole and individual firms are resilient to those scenarios within the regulatory threshold of Solvency 2; and with regard to reinsurance interconnectedness, PRA found no evidence […]
The government has published the Risk Transformation Regulations 2017 (Regulations), which come into force on 8 December 2017, following publication of the draft text by HM Treasury in July. The Regulations enable the creation of a new form of body corporate: a “protected cell company,” which can act as a special purpose vehicle in Insurance […]
Following a period of consultation, PRA has published a policy statement and supervisory statement that are relevant to all parties who wish to apply to PRA for, or have obtained authorisation as, an insurance special purpose vehicle (ISPV). It is also relevant to insurers and reinsurers seeking to use UK insurance special purpose vehicles (ISPVs) as […]
Following receipt of evidence from a range of stakeholders, the Treasury Committee has published its report on Solvency 2 and its impact on the UK insurance industry. The report covers a range of areas including the background to Solvency 2 and the way it has been implemented in the UK, concerns over Risk Margin, proportionality and […]
PRA publishes the first in a series of consultation papers on reform to the implementation of Solvency 2
Following the introduction of Solvency 2 in January 2016, PRA has launched the first of a series of consultation papers on reform to the implementation of Solvency 2. The series begins with a paper on the Matching Adjustment (MA) and sets out PRA’s proposed expectations of firms in this area. PRA has worked closely with […]
PRA issues policy statement and supervisory statement on Solvency 2: Data collection of market risk sensitivities
PRA has published a policy statement and supervisory statement relevant to PRA-regulated insurance or reinsurance firms that are most exposed to market risks. These are primarily Category 1 and 2 firms in the life sector, and any other category life firm or general insurance firm, or composite insurance firm that demonstrates material market risk exposures. The supervisory […]
BoE has updated its MoU on resolution planning and crisis management between it, the PRA and Treasury. The MoU clearly sets out the duties of each entity and was last updated in April.
PRA is consulting on changes to its large exposures rules to provide: enhanced guidance on application of criteria for core UK group and non-core LE group permissions; changing the non-core LE group calibration basis for firms that have both permissions; and changing how the non-core permission applies at UK consolidated group level. Consultation closes on […]
The PRA has outlined proposals on groups policy and double leverage in its latest consultation paper. Groups policy speaks to the distinction between individual legal entities (and the particular jurisdiction they are in) and the broader multi-jurisdictional banking groups of which they form a part, and the difficulties inherent in the PRA regulating both. Groups policy is […]
Sam Woods, speaking at Mansion House, commented on what he predicts to be an increasingly prevailing dynamic in financial institutions and financial regulation. Geofinance is the impact of geography on how banks, insurers and regulators operate, and Woods remarks that it “is likely to be the defining challenge of the next few years.” Woods stated “stability begins at home” […]
PRA’s latest Occasional Consultation paper proposes minor changes to several modules of its Rulebook. Proposed changes include changes to whistleblowing requirements for UK branches of non-EEA deposit takers, MiFID 2, IDD and BMR forms and CRR and CRD amendments in application requirements. Consultation closes on various dates from 17 October to 9 January.
PRA has published an update on its expectations on firms when they use the IRB approach.
PRA has refined its Pillar 2A capital framework from 1 January 2018 as part of its SREP reviews. It has published a new policy statement and update to its supervisory statement with instructions for reporting.
PRA has published changes to its reporting requirements relating to the leverage ratio, to apply to firms’ reporting and disclosure requirements from end of December 2017 onwards. The changes require banks to exclude from the calculation of total exposure measure those assets which are claims on central banks which are matched by deposits in the […]
PRA has published a statement of policy on its approach to setting its minimum requirements for eligible liabilities and own funds (MREL). The statement explains PRA’s approach in relation to going- and gone-concern resources, and its expectations on different size of firms.
PRA has updated its forms firms must submit under the SMR. From 12 November, firms must use the following new forms: Long and Short Form As Form E Statement of Responsibilities Third Country Statement of Responsibilities
FPC has reviewed developments since its last meeting on 21 June and assess the outlook for UK financial stability. Its conclusion was that ‘overall risks to UK financial stability from the domestic environment are broadly unchanged at a standard level’, though risks of greater vulnerabilities may loom on the horizon. The headline statements were as follows: internationally, market […]
We have written an article published in Cyber Security Practitioner on PRA’s July 2017 Supervisory Statement on cyber insurance underwriting risk. The full article is available to subscribers.
Nicky Morgan, new Chair of the Treasury Committee, and Sam Woods of PRA have exchanged letters on Brexit planning. The PRA response explained PRA’s work in assessing the scenarios that might have the biggest impact on its objectives – such as a hard Brexit with no ongoing cross-border market access. PRA has received over 400 […]
PRA has published a consultation paper on model transaction fees, fees and FSCS levies for insurers and fees for designated investment firms. The consultation paper is relevant to insurers and designated investment firms, as well as firms which have, or intend to apply in the future for, Solvency 2 or CRR models. The consultation paper sets […]
FCA has published further details of what it is doing to identify potential consumer harm in the motor finance market. It notes most new car finance is in the form of a Personal Contract Purchase, which is a form of hire purchase under which the value of the car at the end of the contract […]
PRA releases consultation on the minimum requirement for own funds and eligible liabilities (MREL) – buffers – CP15/17
The PRA has today published a CP on its proposed expectations regarding the relationship between MREL and buffer requirements, including the consequences of not meeting these. The CP is relevant to all PRA regulated banks, building societies and PRA designated investment firms. The consultation, which can be found here closes on 29 September 2017.
Today the PRA has published proposals to extend the Senior Managers and Certification Regime (SM&CR) to insurers. These proposals seek to implement a consistent but proportionate regulatory framework to strengthening individual accountability and promoting effective corporate governance for all PRA-regulated firms. In March 2016 the PRA implemented the Senior Insurance Managers Regime. The proposals would […]
PRA has published feedback on its Occasional Consultation Paper 2/17 and its consultation on regulatory reporting, together with finalised rules and policy statements. The new rules cover: minor amendments to the rules on the SMR, remuneration and ringfencing, with updated forms and templates for reporting, new guidance on regulatory reports and an updated supervisory statement […]
PRA has published Consultation Paper CP13/17 on Pillar 2 liquidity which includes the following proposals: for a cash flow mismatch risk (CFMR) and other PRA methodologies for assessing firms’ liquidity risk; A new liquidity reporting template which is based on the EBA ML reporting template; and Updating PRA’s Supervisory Statement (SS) 24/15 and SS34/15 draft reporting […]
On Wednesday 12 July the PRA published CP12/17 ‘Pillar 2A capital requirements and disclosure, that sets out proposed adjustments to the PRA’s Pillar 2A capital framework. It is relevant to all banks, building societies and PRA-designated investment firms. The purpose of these proposals is to bring greater clarity, consistency and transparency to the PRA’s capital setting approach. In promoting […]
Sam Woods has given a speech at the Building Society Association Annual Conference on why supervision matters. The speech was given in May, but has just been published. Among the key points covered were: Supervision is distinct from regulation. Regulation concerns the framework of rules and legal standards which govern the way firms operate, whereas supervision […]
PRA’s Annual Report and Accounts for 2016/2017 outlines how it delivered this year’s business aims, including: Continuing to develop and implement the forward‑looking, judgement‑based supervisory regime; Supporting the Bank in delivering its financial stability and monetary policy objectives; Implementing changes to domestic, European and international regulation; Continuing to devise and influence the domestic and international […]
PRA has published a supervisory statement (SS) and policy statement, relevant to all Solvency II firms, on dealing with a market turning event in the general insurance sector. The statements follow responses to an earlier consultation paper and an industry-sponsored dry-run exercise of a catastrophic loss event. The SS is aimed at Solvency 2 firms […]
PRA has published a policy statement and supervisory statement on cyber insurance underwriting risk. The statements are relevant to all UK non-life insurance and reinsurance firms and groups within the scope of Solvency II including Lloyd’s and managing agents. The supervisory statement sets out PRA’s final expectations regarding the prudent management of cyber underwriting risk, […]
Following 12 responses received to the earlier consultation paper, PRA has issued a policy statement on matching adjustment – illiquid unrated assets and equity release mortgages. The policy statement includes the final supervisory statement, which sets out the PRA’s expectations. The policy statement is relevant to life insurance and reinsurance companies holding or intending to […]
PRA has carried out a review of consumer credit lending, looking at asset quality of PRA-regulated firms and their lending practices in respect of credit cards, unsecured personal loans and motor finance. PRA is concerned that interest margins have fallen as a result of rapid growth in consumer credit, and that some aspects of underwriting […]
PRA and FCA are consulting on changes to the leverage framework following the FPC’s recommendation to exclude claims from central banks from the leverage exposure measure, and compensate for doing so by increasing the minimum leverage ratio requirement to 3.25%. A second consultation addresses how PRA would implement the FPC recommendation if it is adopted. Consultation […]
PRA is consulting on a replacement supervisory statement on recovery planning, setting out additional expectations to those in the current statement 18/13. It says the basis of the statement is still correct, but it wants to introduce specific requirements and guidance in several areas and, separately, update its supervisory statement for ring-fenced bodies in relation […]
PRA has published a policy statement on risk weights in the residential mortgages sector (PS13/17). The statement applies to banks and building societies who use an internal rating based (IRB) method to calculate credit risk capital requirements relating to residential mortgage portfolios. The statement contains the final amendments to the ‘IRB approaches’ supervisory statement, which includes […]
PRA has published a consultation paper proposing changes to both the SMR and SIMR, but focuses predominantly on the SIMR, introducing what PRA describes as “optimisations”. The proposed changes will apply to all Solvency II insurance firms and to large NDFs, and are designed to bring the SIMR more closely into line with the SMR. They include: creating […]
PRA is consulting on minor changes to its regulatory reporting templates. It has found a few inconsistencies relating to forms on the Capital + data items, and an error in the Regulatory Reporting Glossary. Consultation closes on 7 July.
FCA has issued guidance on its approach to reviewing insurance business transfers schemes under Part VII of the Financial Services and Markets Act 2000. While the PRA leads the Part VII process, the FCA also has a role. Chapter 2 – Sets out some initial considerations for firms before contacting the FCA and what firms […]
PRA has published its policy statement with relevant supervisory statements and rule changes in relation to MiFID 2 implementation. The changes: introduce new PRA rules to implement the MiFID 2 requirements on the management body and organisational requirements; delete several rules that are now superseded by the directly applicable Level 2 Regulation on organisational issues […]
PRA has made policy statements and rules requiring UK branches of non-EEA banks and insurers to tell their staff about the PRA and FCA’s whistleblowing services. Any non-EEA bank that has both a branch and a subsidiary in the UK must also tell its branch staff about the whistleblowing procedures the subsidiary has in place. […]
We have prepared a commercial insurance timeline which highlights key legislation, regulation, cases and other developments that impact on the industry. This timeline covers developments from March 2017 onwards.
PRA has asked the UK’s largest general insurers to provide information about the impact of a range of stress tests on their projected Own Funds, as well as providing additional information on their sectoral exposures to the UK economy. The purpose of the exercise is to enable the PRA to assess the potential impact of severe […]
Sam Woods, the PRA’s CEO, has published a letter seeking contingency plans from firms in light of the UK’s impending withdrawal from the EU. The letter is relevant to banks, insurers and designated investment firms undertaking cross-border activities between the UK and the rest of the EU. PRA expects firms to prepare and execute in […]
The March Regulatory Digest has been published by the PRA. Top news covered this month: insurance supervision at the PRA – speech by Sam Woods and report by the Independent Evaluation Office (IEO) consultation on its regulated fees and levies rates proposals for 2017/18 reminds firms that requirements related to two aspects of the strengthening accountability regime […]
PRA has published its proposals for regulated fees and levies for 2017/18. Key proposals include: an estimate of a 2% increase in PRA’s budgeted cost for ongoing regulatory activities and a new estimate costs associated with EU withdrawal of £5.4m; PRA will continue to incur costs on implementing the ring-fencing regime, with related fees payable by […]
The Bank of England’s Independent Evaluation Office (IEO) has published its evaluation of the PRA’s approach to its insurance objective. The PRA’s insurance objective is to contribute to the securing of an appropriate degree of protection for policyholders. While the IEO did not find any evidence to suggest that the PRA is not meeting its policyholder […]
On 20 March 2017, Sam Woods, Deputy Governor for Prudential Regulation and Chief Executive Officer of the PRA delivered a speech on insurance supervision at the PRA. Mr Woods commented that a precondition to the success of the UK’s world leading insurance sector is world-class insurance supervision, which is what the PRA aims to deliver. […]
PRA’s Deputy Governor and CEO responds to Treasury committee call for further evidence on EU insurance regulation
Sam Woods, the PRA’s Deputy Governor and CEO, has published a letter addressed to the Treasury Committee on EU insurance regulation. The letter is a preliminary response to requests by the Committee for further evidence on the following: the PRA’s view in relation to the 23 areas recommended by the Association of British Insurers (ABI) […]
Philip Hammond’s Spring Budget has not sprung any surprises on financial regulation. The Chancellor is required to write to FCA and PRA (to be operated by the Prudential Regulation Committee) each year with recommendations, and has accordingly done so. The letter to FCA applauds FCA’s work to date, and highlights that: the Government is particularly […]
The Bank of England published terms of reference for the Prudential Regulation Committee (PRC). The PRC has responsibility within the Bank for exercising the Bank’s functions as the PRA under the amended Bank of England Act 1998. The terms of reference include: the membership of the PRC; details of the statutory responsibilities (PRC setting the […]
PRA and FCA have published a policy statement and finalised guidance respectively on loan to income (LTI) ratios in mortgage lending with immediate effect. In June 2014, the Financial Policy Committee issued a recommendation to PRA and FCA advising that they should “ensure that mortgage lenders do not extend more than 15% of their total […]
PRA has fined the Bank of Tokyo-Mitsubishi UFJ Limited £17.95m and MUFJ Securities EMEA plc £8.925m. The fine relates to a failure of the firms to be open and honest with PRA in respect of a US enforcement action, in breach of Fundamental Rules 6 and 7 in the case of BTMU and Fundamental Rule […]
FCA has published a policy statement to report on the main issues arising from the Enforcement Review and the Green Report. It has also published the final amendments to its Glossary, DEPP and EG. Changes to the rules include new defined terms, changes to the rules on the operation of the RDC, the procedure for […]
FCA is consulting on the changes it needs to make to its rules to incorporate the new regulated activity of insurance risk transformation. The consultation complements FCA and PRA’s consultations on authorisation and supervision of ISPVs, which close in late February. FCA notes the Treasury’s proposal that ILS sales should be restricted to Qualified Investors […]
PRA has issued a policy statement confirming it will increase the deposit protection limit provided by the FSCS to £85,000 from 30 January 2017. This is an increase from £75,000 to reflect currency fluctuations that occurred following the UK’s referendum vote to leave the EU. Firms must make all changes to customer-facing materials required to implement the […]