On 15 March 2022, the PRA published Consultation Paper 3/22 ‘Occasional Consultation Paper – March 2022’ (CP3/22).

In CP3/22 the PRA sets out minor amendments to UK Technical Standards (UKTS), PRA rules, supervisory statements (SS), Legacy Supervisory Statements, and a Statement of Policy (SoP). Among other things it proposes:

  • To remediate a small inconsistency in relation to the leverage ratio framework which would result in amendments to SS45/15 ‘The UK leverage ratio framework’.
  • Consequential modification to Part 2 (PRA) binding technical standard (BTS) 1152/2014 on the identification of the geographical location of the relevant credit exposures for calculating institution-specific countercyclical capital buffer rates. The proposed consequential modification would provide that references to Part 3 of CRR in Part 2 (PRA) BTS 1152/2014 should be read as including reference to CRR rules, referred to in the proposed modification, in the Standardised Approach and Internal Ratings Based Approach to Credit Risk (CRR) and Counterparty Credit Risk (CRR) Parts of the PRA Rulebook.
  • To delete policy material that has become redundant. This includes:
    • SS3/13 ‘Capital requirements for major UK banks and building societies’.
    • SS4/13 ‘Solvency II: applying EIOPA’s preparatory guidelines to PRA-authorised firms’.
    • SS29/15 ‘CRD IV: Interim LCR reporting’.
    • Legacy SS4/13 ‘Liquidity and capital regime for UK banks and building societies: adjustments in relation to FPC statement’.
    • Legacy SS6/13 ‘Pension obligation risk: treatment in the Internal Capital Adequacy Assessment Process (ICAAP) for banks and building societies’.
    • Thirteen guidelines and recommendations referred to in the SoP ‘Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU’.
  • To make minor consequential amendments to the PRA Rulebook as well as a set of relevant UKTS, following the introduction of the Investment Firms Prudential Regime.
  • To amend Annex XIII of the Pillar 3 disclosure template and Annex XIV instructions for the liquidity requirements templates.
  • To make minor corrections to the PRA Rulebook.

The deadline for comments on CP3/22 is 10 May 2022. The proposed implementation date for the changes resulting from CP3/22 is 28 July 2022.