CP5 / 21 – Implementation of Basel standards
Posted on July 9, 2021
PS17 / 21 – Implementation of Basel standards
This Policy Statement (PS) from the Prudential Regulatory Authority (PRA) provides comments on the responses to Consultation Document (CP) 5/21 “Implementing Basel Standards” (page 2 of 2). It also contains almost final regulatory instruments, policy statements (SoP), oversight statements (SS) and reporting templates and instructions (see list of appendices below).
This SP applies to UK banks, building societies and investment firms designated by the PRA, as well as UK financial holding companies and UK mixed financial holding companies of certain PRA authorized firms.
Summary of responses
The PRA received 20 written responses to CP5 / 21, in addition to comments received at a number of meetings with interested stakeholders. Respondents generally welcomed the PRA’s proposals to implement the remaining parts of the Basel III standards. However, respondents also requested further clarification on the general approach of the ARP, provided general comments on the proposals and expressed concerns about the nature and impact of some proposals, as discussed in the NP. Most of the responses focused in particular on the proposals of the PRA on the definition of capital, the NSFR and the SA-CCR.
The policy material in this PS is released as near-final. The PRA does not intend to change the policy or make significant changes to the text of the instruments until the final policy is drafted.
The PRA plans to publish the final regulatory instruments in a subsequent SP, after the HM Treasury deposits the Statutory Instrument (SI), in order to remove the relevant parts of the CRR that these quasi-final rules will replace.
This policy is intended to take effect at the same time as the revocation by the HM Treasury of the parties concerned from the CRR, which will take place on Saturday January 1, 2022.
Aspects of the quasi-final rules are linked to existing publications, such as Discussion Paper (DP) DP1 / 21 “A solid and simple prudential framework for non-systemic banks and building societies”, leverage ratio, and the next PRA consultations, such as Basel 3.1. For more information on these aspects, please refer to the Regulatory initiatives grid.
Annex 1: RULES INSTRUMENT CRR almost final 2021
Annex 2: PRA RULEBOOK almost final: CRR FIRMS: (CRR 2 REVOCATIONS AND OTHER AMENDMENTS) INSTRUMENT 2021
Appendices 3-11 and 18: Watch Statements and Policy Statements – please see PS17 / 21 (page 81)
Annex 12: Detailed analysis of objectives and compliance
Annex 13: Summary of the purpose of the rules
Annex 14: Corresponding provisions
Annex 15: Reprocessing provisions
Annex 16-17: Reporting and Disclosure Templates and Instructions – please see PS17 / 21 (page 82)
Posted on February 12, 2021
CP5 / 21 – Implementation of Basel standards
This consultation document (PC) sets out the rules proposed by the Prudential Regulation Authority (PRA) regarding the implementation of international standards through a new regulatory instrument of the PRA Capital Requirements Regulation (CRR).
The purpose of these rules is to implement part of the set of international standards which remain to be implemented in the UK. This PC also sets out the proposed new PRA CRR rules in their entirety, including those parts of the onshore CRR that do not change but instead are transferred into the PRA rules (although, when these do not change, they are not part of the onshore CRR. of this consultation).
This consultation is aimed at banks, building societies, investment firms designated by the PRA and financial holding companies or mixed financial holding companies authorized or designated by the PRA.
The approach proposed by the PRA would make it possible to implement these Basel III standards by companies from Saturday January 1, 2022; allow sufficient time for companies to integrate the related prudential reports; and build on the progress already made by companies in terms of implementation.
Answers and next steps
This consultation closes on Monday, May 3, 2021. The PRA is seeking comments on the proposals made in this consultation, including the questions at the end of Chapters 3, 6, 8, 12 and 14. The PRA would also welcome comments. business views on whether additional and significant costs or impacts not identified in Chapter 17 may arise as a result of the proposals. Please direct any comments or inquiries to email@example.com.
Annex 13: Draft updated templates and instructions (see links below)
PRA data elements
RFB Data Elements
UK COREP and FINREP data
UK COREP and FINREP Instructions
UK Pillar 3 Disclosure Data Elements
UK Pillar 3 Disclosure Instructions