On 30 November 2020, the PRA published a statement regarding its forthcoming Policy Statement on CRD V.
The PRA explains that:
- The UK approach to implementing CRD V will occur through The Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020, and through amendments to PRA rules and expectations.
- The PRA consulted on CRD V in Consultation Papers 12/20 and 17/20. These consultations closed on 30 September and 17 November 2020 respectively. The PRA is considering the responses, and whether amendments to its proposed approach are warranted in light of the responses received to these consultations.
- By mid-December, the PRA intends to publish a Policy Statement that will summarise the consultation responses and explain the PRA’s policy approach, including any further supervisory processes required for implementation. It will include the PRA’s approach to revisions to the definition of capital for Pillar 2A on which the PRA consulted in Consultation Paper 17/20.
- CRD V will come into effect on 28 December 2020. Most of its requirements apply from 29 December 2020, including those relating to Pillar 2A.