On 15 July 2019, the PRA published Consultation Paper 15/19: Large exposures: Reciprocation of French measure (CP15/19). In CP15/19 the PRA sets out its proposal to apply a tighter limit for large exposures to certain French non-financial corporations, to reciprocate the same measure imposed by France.

The proposed measure applies on a consolidated basis to firms identified by the PRA as global systemically important institutions and other systemically important institutions under the CRD IV as implemented in the Capital Requirements (Capital Buffers and Macro-prudential measures) Regulations 2014. CP15/19 is relevant to such firms and their subsidiaries.

The PRA’s proposal would be affected through amendments to the Large Exposures Part of the PRA Rulebook. The proposed amendments to the Large Exposures Part of the PRA Rulebook is set out in Appendix 1 of CP15/19. These amendments have been designed in the context of the current UK and EU regulatory framework. The PRA has assessed that the amendments will be affected in the event of a hard Brexit. In light of this, a second version of the proposed amendments to the PRA Rulebook rules, which includes the relevant changes relating to the UK’s withdrawal from the EU, is set out in Appendix 2 of CP15/19.

The deadline for comments on CP15/19 is 6 September 2019.