The PRA has published a consultation on its proposal to require an external audit of elements of the Pillar 3 disclosure under Solvency II.
PRA consults on external audit of the public disclosure requirement for Solvency II firms
PRA publishes consultation on a supervisory statement on capital extractions by firms in run-off within the general insurance sector
The Prudential Regulation Authority (PRA) has published a consultation paper (CP42/5) on a draft supervisory statement on capital extractions by general insurance firms in run-off. The draft statement sets out the regulator’s expectations for compliance with prudential provisions in the PRA Rulebook for firms in run-off. The supervisory statement sets out the PRA’s expectations in relation to the factors that senior management should take into account before making a request to the PRA to extract capital from a business in run-off.
Proposed US regulations aim at strengthening systemically important banks
Recently, the Federal Reserve Board proposed new regulations, based on recommendations from international regulators, to require global systemically important US banks, and such non-US banks with US operations, to maintain a “total loss-absorbing capacity” ratio that would be satisfied by maintaining additional capital and issuing certain types of unsecured long term debt.
Kathleen A. Scott
PSR information request in relation to the EU Interchange Fee Regulation
The UK’s Payment Systems Regulator (PSR) has published an information request that it has sent to six payment schemes (American Express, Diners Club International, JCB International, MasterCard, UnionPay International and Visa Europe) to help it understand whether or not any schemes qualify for a temporary exemption from part of the Interchange Fee Regulation (IFR).
The
ESMA will not exempt the collateralisation of bank guarantees for energy derivatives under EMIR
The European Securities and Markets Authority (ESMA) has decided not to further extend the existing grace period for non-financial firms’ use of non-collateralised bank guarantees to cover transactions in energy derivatives cleared by European central counterparties (CCPs), for the following reasons:
- allowing fully uncollateralised commercial bank guarantees could mean an undue source of risk for CCPs;
- the existing three year grace period seems sufficient for the wholesale energy market to prepare for the incoming collateral obligations;
- some European CCPs already have implemented the EMIR requirements;
- EMIR requires that a CCP only accepts highly liquid collateral with minimal credit and market risk; and
- a new postponement would maintain a discrepancy with international standards such as the Committee on Payments and Market Infrastructure and the International Organization of Securities Commissions Principles for Financial Market Infrastructures.
FSB publishes standards and processes for global securities financing data collection and aggregation
The Financial Stability Board (FSB) has published a report on the standards and processes for global securities financing data collection and aggregation (the Report).
The Report builds on the policy recommendations from the FSB’s August 2013 report Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos, in particular its recommendations to
BCBS interim impact analysis of fundamental review of the trading book
The Basel Committee on Banking Supervision (BCBS) has published the results of its interim impact analysis of its fundamental review of the trading book.
The report, which assesses the impact of proposed revisions to the market risk framework set out in two consultative documents published in October 2013 and December 2014, found that among other
Council of EU Presidency compromise proposal on Delegated Regulation amending the CRR
The Presidency of the Council of the EU has published a compromise proposal on a Delegated Regulation amending the Capital Requirements Regulation on prudential requirements for credit institutions and investment firms.
With respect to the original European Commission proposal, the new text is marked in underlined bold and deletions are indicated in strikethrough.
EBA consults on criteria for a preferential treatment in cross-border intragroup financial support under LCR
The European Banking Authority has published a consultation paper on draft regulatory technical standards (RTS) on additional objective criteria for the application of a preferential treatment in the calculation of the liquidity coverage requirement (LCR), for cross-border intragroup liquidity flows under the Capital Requirements Regulation (CRR).
The draft RTS’ give further details on these additional
Supervision of international bank branches
Attitudes of national regulatory authorities to the presence of an international bank through a branch operation differs across jurisdictions. Some authorities have adopted an open approach particularly where the bank’s home country regulatory regime is broadly equivalent to its own. The bank’s business model may also play an important role as well as resolvability requirements.
To help keep banks up-to-date with current developments, we have produced a global comparative analysis concerning the regulation and the supervision of bank branches.