On 21 July 2022, the PRA published Consultation Paper 13/22 ‘Amendments to the PRA’s approach to identifying other systemically important institutions’ (CP13/22).
In CP13/22 the PRA is proposing to make changes to its Statement of Policy (SoP) on ‘The PRA’s approach to identifying other systemically important institutions’ (O-SIIs) and its SoP on ‘Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU’. These changes concern the criteria and scoring methodology the PRA uses to identify O-SIIs and involve:
- The removal of the EBA’s scoring methodology from the O-SII identification process, and deletion of the EBA Guidelines‘ on criteria to assess O-SIIs, such that O-SII identification is based solely on the PRA’s scoring methodology.
- Updates to specific indicators and weights in the PRA’s scoring methodology for O-SII identification.
The deadline for responding to CP13/22 is 22 September 2022.
The PRA expects that the implementation date of the changes to be the date when the revised SoP is published. The PRA expects to carry out the 2022 O-SII designation process under the revised approach. In accordance with the SoP, the PRA will publish a list of firms designated as O-SIIs under this process by 1 December 2022.