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UK regulatory update – CRDV – Holding companies’ application deadline

UK regulatory update – CRDV – Holding companies’ application deadline

Background

  • On 7 May 2021, the Financial Conduct Authority (FCA) published on its website – as did other UK regulators – the third six-monthly “Regulatory Grid” from the Financial Services Regulatory Initiatives Forum
  • Certain items are labelled as “key initiatives in the regulatory landscape” to get further emphasis – that includes the item summarised in this text
  • This Regulatory Grid sets out the regulatory pipeline for the next 24 months and enables firms to plan more accurately for forthcoming initiatives
  • The Regulatory Grid is published twice a year to help manage the operational impact on firms of implementing initiatives from the Forum members
  • This guidance is important for all organisations within UK financial services

Summary

  • This particular initiative – Capital Requirements Directive V (CRDV) – is being led by the Bank of England
  • Approval of holding companies Part 12 B (Approval of certain holding companies) FSMA, (Reg 2, SI) requires certain types of bank and designated investment firm parent financial holding company (FHC) or mixed financial holding company (MFHC) that substantively control their group to apply to the PRA for approval or exemption by 28 June 2021

About the Financial Services Regulatory Initiatives Forum

The Financial Services Regulatory Initiatives Forum was launched to strengthen coordination between members.

It is made up of representatives of the Bank of England, Financial Conduct Authority, Prudential Regulation Authority, Payment Systems Regulator, the Competition and Markets Authority, the Information Commissioner’s Office, The Pensions Regulator and the Financial Reporting Council.

HM Treasury is an observer member.

Timeline with relevant dates to be logged on regulatory calendar

  • Holding companies can begin making applications in June 2021 and must have done so by 28 June 2021
  • All holding companies must be approved or exempt by 31 December 2021

Next steps

All firms need to address requirements to comply with relevant regulatory supervisors.

If anyone has specific questions or needs any advice, contact our specialists.