Joint regulatory statement (HMT, PRA and FCA) about planned prudential reforms
- On 19 October 2020, a joint statement was published by HM Treasury (HMT), the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) on the implementation of prudential reforms contained in the Financial Services Bill
- Specific focus is on the UK’s Investment Firms Prudential Regime (IFPR) and implementation of those Basel 3 reforms which make up the UK equivalent to the outstanding elements of the EU’s 2nd Capital Requirements Regulation
- The regulators (HMT, PRA and FCA) have decided to target an implementation date of 1 January 2022 for these two regimes
- The intended implementation date follows feedback from industry in relation to these specific proposals and in response to the most recent Regulatory Initiatives Grid (September 2020), where industry raised concerns about the general high volume of regulatory reform in 2021
As the Financial Services Bill continues its progress through Parliament, HM Treasury, the FCA and the PRA consider it appropriate to update industry on planned timelines for introducing the UK’s Investment Firms Prudential Regime (IFPR) and implementation of those Basel 3 reforms which make up the UK equivalent to the outstanding elements of the EU’s 2nd Capital Requirements Regulation.
HM Treasury will ensure the relevant secondary legislation is in place in good time, and the regulators will endeavour to provide industry with as much sight of the final rules as possible ahead of this date, to support effective implementation.
The April 2020 statement by HMT and the PRA on Basel 3.1 implementation still applies.
Timeline with relevant dates to be logged on regulatory calendar
- Implementation date for prudential reform on 1 January 2022.
All firms and individuals are urged to remain focused on all regulatory announcements from regulators including those for related requirements to achieve readiness for significant prudential reforms by January 2022.
If anyone has specific questions or needs any advice, contact our specialists.