On 8 August 2022, the Prudential Regulation Authority (PRA) published Policy Statement 7/22 ‘Responses to CP3/22 Occasional Consultation Paper’ (PS7/22). In PS7/22 the PRA sets out its final policy and rules following Consultation Paper 3/22 ‘Occasional Consultation Paper’ (CP3/22).
In CP3/22, the PRA proposed various miscellaneous amendments to the PRA Rulebook including:
- An amendment to its approach to fulfilling its obligation to publish technical information necessary for the valuation of insurance liabilities for each relevant currency and some clarifications in its approach.
- To remediate a small inconsistency in relation to the leverage ratio framework.
- A consequential modification to Part 2 (PRA) Binding Technical Standards (BTS) 1152/2014 on the identification of the geographical location of the relevant credit exposures for calculating institution-specific countercyclical capital buffer rate
- Changes to reporting requirements and one relevant UK Technical Standard (UKTS) following the implementation of the Basel standards. The PRA also proposed minor formatting corrections to rule references in the PRA Rulebook.
- Amendments to a non-corresponding reference in BTS 2014/526 to the Mark-to-Market method in Article 272 of the onshored Capital Requirements Regulation.
- Consequential amendments to the PRA Rulebook as well as a set of relevant UKTS, following the introduction of the Investment Firms Prudential regime.
Changes to proposed Policy
The PRA reports that it received no responses to CP3/22.
The appendices to PS7/22 provide links to the final policy material.
Implementation and next steps
The implementation date for the consequential amendments to the PRA Rulebook as well as a set of relevant UKTS, following the introduction of the Investment Firms Prudential regime, is 12 August 2022. The implementation date for the remaining policy changes is 1 September 2022.