The PRA has issued Consultation Paper 25/16: The implementation of ring-fencing: reporting and residual matters (CP25/16). CP25/16 comprises two parts:
- part one sets out the PRA’s proposals for the data it intends to collect in connection with ring-fencing, in addition to the data already required under the broader regulatory regime or as a consequence of the PRA’s ring-fencing policy; and
- part two sets out the PRA’s proposals in respect of additional matters relating to ring-fencing on which the PRA has decided to consult. These include proposals to implement the expectation in an earlier consultation (Consultation Paper 37/15: The implementation of ring-fencing: prudential requirements, intragroup arrangements and use of financial market infrastructures (CP37/15)) that a UK parent of a ring-fenced body (RFB) should not make use of double leverage to fund its investment in an RFB or other entities in an RFB sub-group, and to comply with the Financial Policy Committee’s recommendations in relation to the systemic risk buffer framework.
CP25/16 appendix also sets out proposed amendments to the PRA rules, supervisory statements and other relevant PRA publications.
The deadline for responses to CP25/16 is 7 October 2016.
CP25/16 is one of two publications issued by the PRA relating to ring-fencing. The other ring-fencing publication, Policy Statement 20/16: The implementation of ring-fencing: prudential requirements, intragroup arrangements and use of financial market infrastructures (PS20/16), sets out the FCA’s feedback to responses received to its proposals set out in CP37/15. The appendices to PS20/16 set out the final rules and supervisory statements to implement the proposals consulted on in CP37/15 and the near-final rules and supervisory statements set out in Policy Statement 10/15: The implementation of ring-fencing: legal structure, governance and the continuity of services and facilities.