On 12 September 2024, the PRA published Consultation Paper 9/24: Streamlining the Pillar 2A capital framework and the capital communications process (CP9/24).
In CP9/24 the PRA sets out proposals to streamline the Pillar 2A capital framework and capital communications process. CP9/24 is relevant to all PRA-regulated banks, building societies, designated investment firms, and all PRA-approved or PRA-designated holding companies.
The proposals in CP9/24 include:
- Retiring the ‘refined methodology’ to Pillar 2A (chapter 2).
- Streamlining firm-specific capital communications and directions under section 192C Financial Services and Markets Act 2000 (chapter 3).
- Minor clarifications to the interest rate risk in the banking book and pension obligation risk Pillar 2A approaches (chapter 4).
Next steps
The deadline for comments on CP10/24 is 12 December 2024.