On 8 April 2019, the PRA published Consultation Paper 8/19: Supervising international banks: revision of the Branch Return Form (CP8/19).
CP8/19 is relevant to all existing and prospective PRA-supervised branches of deposit-takers and PRA designated investment firms which are not UK headquartered firms.
CP8/19 sets out the PRA’s proposals for changes to the format and content of the Branch Return Form, and additional guidance to assist firms in completing it. The proposals would amend the Branch Return Form in Rule 4.1 of the Incoming Firms and Third Country Firms Part of the PRA Rulebook and creates reporting instructions for the form in Supervisory Statement 34/15.
Specifically, in CP8/19 the PRA is proposing to:
- provide guidance for completion of the Branch Return Form in Supervisory Statement 34/15 alongside the other reporting guidance for deposit takers and investment firms;
- align balance sheet concepts used in the Branch Return Form with concepts and guidance used in the PRA’s wider reporting framework, e.g. by requiring assets to be broken down into the standard categories of ‘Loans and advances’, ‘Derivatives’ etc;
- amend the reporting content, slightly reducing the number of data points reported by most firms;
- clarify that firms must report within 30 business days; and
- replace the current Excel reporting format for the Branch Return Form with the XBRL reporting format.
The deadline for responses to CP8/19 is 7 July 2019. The PRA proposes that the changes to the Branch Return Form take effect for the reporting of the H1 2020 Branch Return (i.e. for the period ending 30 June 2020).
The proposals set out in CP8/19 have been designed in the context of the current UK and EU regulatory framework. A second version of the proposed rules which includes relevant changes relating to the UK’s withdrawal from the EU is set out in Appendix 2. As the changes relate to reporting they should be read in conjunction with Supervisory Statement 2/19: PRA approach to interpreting reporting and disclosure requirements and regulatory transactions forms after the UK’s withdrawal from the EU.