PRA publishes three linked consultations about UK resolution policy
- The Prudential Regulation Authority (PRA) published three detailed consultations on 28 October 2020. Jointly with the Bank of England, the PRA is consulting on a package of proposals relating to resolution policy.
- These consultations are important for all PRA-authorised UK banks, building societies, and PRA-designated UK investment firms currently in scope of, or likely to come into scope of, the Rules.
- For a firm to be in scope of the Rules, it must receive critical services, and must meet one of the three thresholds set out in Operational Continuity 1.1.
- CP 18/20 is titled “Bank Recovery and Resolution Directive II”
- CP 19/20 is titled “Resolution assessments: Amendments to reporting and disclosure dates”
- CP 20/20 is titled “Operational continuity in resolution: Updates to the policy”
- In CP 18/20, the PRA sets out proposals relating to its Contractual Recognition of Bail-in (CROB) and Stay in Resolution (Stays) Rules. The purpose of the proposals is to support the UK’s transposition of the Bank Recovery and Resolution Directive II (BRRD II), which amends the BRRD. The UK is required to transpose the BRRD II amendments by Monday 28 December 2020.
- In CP 19/20, the PRA sets out its proposal to extend, by one year, the dates by which firms are first required to submit a report of their assessment of their preparation for resolution, and to first publish a summary of that report under Rule 3.1(1) and Rule 4.1(1) respectively of the Resolution Assessment Part of the PRA Rulebook (Rules).
- In CP 20/20, the PRA sets out its proposals to revise its operational continuity in resolution (OCIR) policy.
Here are the relevant webpage links to each PRA-published consultation paper:
Timeline with relevant dates to be logged on regulatory calendar
- CP 18/20 closes on 30 November 2020
- CP 19/20 and CP 20/20 close on 31 January 2021
Any respondents need to send their responses and comments to the PRA as soon as possible.
If anyone has specific questions or needs any advice, contact our specialists.