The PRA has published Policy Statement 29/17: Recovery planning (PS29/17).

PS29/17 is relevant to UK banks, building societies, PRA-designated investment firms and qualifying parent undertakings to which the Recovery Planning Part of the PRA Rulebook applies.

In PS29/17 the PRA provides feedback on the responses to Consultation Paper 9/17: Recovery planning (CP9/17) and sets out the PRA’s final expectations on the content of recovery plans and on the approach to recovery planning for groups containing a ring-fenced body. In CP9/17, the PRA consulted on a new Supervisory Statement on recovery planning that would supersede Supervisory Statement 18/13: Recovery planning and minor amendments to Supervisory Statement 8/16: Ring-fenced bodies (SS8/16).

The appendices to PS29/17 set out the final Supervisory Statement for recovery planning, Supervisory Statement 9/17: Recovery planning (SS9/17) (Appendix 1) and the updated version of SS8/16 (Appendix 2).

Firms within scope of PS29/17 should meet the following expectations in SS9/17 by 30 June 2019:

  • full separability analysis for disposal options (paragraph 2.30(i) of SS9/17);
  • modelling of capital and liquidity profiles in each scenario (paragraph 2.66 of SS9/17);
  • full analysis of funding needs by currency in each scenario (paragraph 2.68 of SS9/17); and
  • integration of liquidity contingency plans (contingency funding plans) (paragraph 2.93 of SS9/17).

The PRA expects firms to meet all other expectations set out in SS9/17 by 30 June 2018, or by the firm’s first annual update of their recovery plan following publication of PS29/17, whichever is later.

As mentioned above the PRA has also made minor amendments to SS8/16. SS8/16 sets out the PRA’s expectations for the following areas:

  • legal structure and holdings of capital;
  • establishment of a ring-fenced body sub-group and application of requirements on a sub-consolidated basis;
  • application of capital and liquidity standards to a ring-fenced body sub-group;
  • intragroup concessions;
  • distributions;
  • intragroup transactions and exposures;
  • continuity of services and facilities of ring-fenced bodies;
  • use of financial market infrastructures;
  • exceptions to excluded activities and prohibitions; and
  • reporting requirements.

View Recovery planning, 11 December 2017

View Ring-fenced bodies, 11 December 2017