Bank of England update – Resolvability Assessment Framework (RAF)
- On 24 February 2021, the Bank of England (the Bank) published an open letter to the CEOs of the eight major UK banks in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle
- Click here for link
- This letter was sent by Dave Ramsden, the Deputy Governor for Markets & Banking in advance of the first Resolvability Assessment Framework (RAF) report submissions due in October 2021
- The RAF is the final major piece in the UK’s resolution regime and is a key priority for the Bank and Prudential Regulation Authority (PRA).
The Resolvability Assessment Framework (RAF) sets out what firms need to do to be considered resolvable by the Bank of England, as the UK’s resolution authority.
The framework is designed to make resolution more transparent, better understood and more successful. The 11-page letter contains sections including:
- Maintaining a “fit and ready” resolution regime
- Making resolution a more transparent process
- Firms are responsible for their own resolvability
- Good practice for resolvability governance, testing, and capability design.
The annexes to this letter provide further information to assist firms in their work to achieve the above outcomes. They do not impose any requirements in addition to those set out in already-published resolvability policy.
- The first annex provides examples of good practice that firms should consider as they develop their capabilities to achieve the resolvability outcomes.
- If any firm required specific feedback on individual progress to date, the Bank provided that privately in a second annex.
Timeline with relevant dates to be logged on regulatory calendar
- First RAF submissions are due in October 2021; tracking date is 1 October 2021
The Bank anticipates engaging firms later in 2021 on the operational arrangements for the first RAF cycle. If you have any further questions regarding this letter please get in touch with your usual Resolution Directorate contact.
If anyone has specific questions or needs any advice, contact our specialists.