On 21 June 2021, the PRA published Consultation Paper 12/21 – Financial holding companies: Further implementation (CP12/21).

In CP12/21 the PRA sets out proposals designed to give effect to the changes in the Capital Requirements Directive V, as transposed, and Capital Requirements Regulation II, as onshored which impose direct responsibility for compliance with consolidated prudential requirements on approved or designated holding companies. As such the proposed changes in the PRA Rulebook do not create any new prudential requirements. Instead, the changes are deemed necessary to ensure that, where a Part of the PRA Rulebook applies on a consolidated basis, it is applied at the correct level within the banking group.

In addition to changes in the PRA Rulebook, the proposals would create a new Statement of Policy (SoP) ‘Supervisory measures and penalties in relation to financial holding companies’ and amendments to the SoP ‘The PRA’s approach to enforcement: statutory statements of policy and procedure’.

As the proposals in CP12/21 are designed to maintain the operability of the PRA Rulebook when directly applicable consolidated prudential requirements apply at the level of the approved or designated holding company, the regulator does not anticipate any additional cost to firms as a result.

The deadline for comments on CP12/21 is 22 July 2021.

The PRA proposes that the implementation date for the changes resulting from CP12/21 would be 15 September 2021.