On 28 September 2021, the PRA published Consultation Paper 19/21: Domestic Liquidity Sub-Groups (CP19/21).
In CP19/21 the PRA sets out proposed rules in respect of the application of prudential liquidity requirements to Domestic Liquidity Sub-Groups (DoLSubs). The PRA proposes to:
- Permit the inclusion in a DoLSub of firms that are subsidiaries of a common immediate UK qualifying parent undertaking that is not a bank or PRA-designated investment firm.
- Revise the conditions to qualify for a DolSub permission and the factors that the PRA will take into account when considering DoLSub applications.
The proposals would result in changes to the Liquidity Part of the PRA Rulebook (Appendix 1 of CP19/21) and the Statement of Policy ‘Liquidity and funding permissions’ (Appendix 2 of CP19/21).
The deadline for comments on CP19/21 is 12 October 2021.
The PRA proposes that the implementation date for the changes resulting from CP19/21 would be 1 January 2022, with the finalisation of the rules taking place in November 2021.