On 20 November 2018, the Bank of England (BoE) published a letter (dated 19 November 2018) sent to chief finance officers (CFOs) of firms within scope of its  statement of policy on valuation capabilities to support resolvability (SoP). The letter notifies firms of the SoP published in June 2018 and is intended to provide  CFOs with information to support the implementation of the SoP.

The SoP sets out seven principles for the capabilities these firms should maintain to support timely and robust resolution valuations (see our blog on the SoP here). The BoE’s guidance is contained within annex 2 of the letter; the guidance is purely illustrative in nature. It does not set out any additional expectations beyond those set out in the Valuations SoP and related legal requirements and firms’ compliance will only be assessed against the principles in the SoP itself.