The PRA has published Consultation Paper 28/16: Ensuring operational continuity in resolution: reporting requirements (CP28/16). In CP28/16, the PRA sets out proposals for data that the regulator intends to collect in connection with the final policy on operational continuity set out within Supervisory Statement 9/16 ‘Ensuring operational continuity in resolution’ and the General Organisational Requirements and Outsourcing Parts of the PRA Rulebook (SS9/16).
CP28/16 is relevant to UK banks, building societies and UK designated investment firms that provide functions that are critical to the UK economy and that need to be continued in resolution. CP28/16 sets out proposals for these firms to report on the activities and financial resources of their group providers. This will enable the PRA to monitor its expectations for the adequacy of a group provider’s liquid assets. SS9/16 sets out that a firm should ensure that, as a minimum, a group provider should be supported by liquidity resources equivalent to at least 50% of annual fixed overheads of the critical services provided by the group provider. The PRA proposes that firms in scope will be required to submit the information annually, on a calendar year basis. Such firms must submit the information 45 business days after the first reporting period ending 31 December 2019, with the first submission due in March 2020. The PRA intends any eventual rules and reporting to apply from 1 January 2019.
The deadline for comments on CP28/16 is 28 October 2016.