European Banking Authority
CRR - EBA publishes report on use of specific exemptions included in the large exposures regime - 22 July 2022
The European Banking Authority (EBA) has published a report on the use of specific exemptions included in the large exposure regime under the Capital Requirements Regulation (575/2013/EU) (CRR).
The Report provides detailed quantitative evidence about the use of the exemptions as of June 2021, and quantifies the impact of a potential removal of individual exemptions. The Report’s main finding is that some of the exemptions are widely used across the EU and their removal would have a material impact. Specifically, these are the exemptions set out in points f, g and j of Article 400(1) of the CRR, and points a, c and g of Articles 400(2) and 493(3) of the CRR.
EBA Report: On the use of exemptions from the limits to large exposures, under Article 507(1) of Regulation (EU) No 575/2013 amended by Regulation (EU) No 876/2019 (EBA/Rep/2022/16)
Press release
HM Treasury
The Financial Services and Markets Act 2000 (Consequential Amendments of References to Rules and Miscellaneous Amendments) Regulations 2022 - Statutory instrument and explanatory memorandum published - 22 July 2022
The Financial Services and Markets Act 2000 (Consequential Amendments of References to Rules and Miscellaneous Amendments) Regulations 2022 (the Regulations) have been published, together with an explanatory memorandum.
The Regulations make consequential changes to the Financial Services and Markets Act 2000 (FSMA), as a result of the changes introduced by the Financial Services Act 2021. The changes reflect the transfer of certain prudential requirements set out in UK legislation to the PRA, to implement the remaining aspects of the Basel III.I standards. They also reflect the introduction of the FCA’s Investment Firms Prudential Regime.
The Regulations will come into force on 17 August 2022.
The Financial Services and Markets Act 2000 (Consequential Amendments of References to Rules and Miscellaneous Amendments) Regulations 2022
Explanatory memorandum
Webpage
Prudential Regulation Authority
Identifying O-SIIs - PRA publishes consultation paper (CP13/22) - 22 July 2022
The PRA has published a consultation paper (CP13/22) on proposed changes to the criteria and scoring methodology it uses to identify other systemically important institutions (O-SIIs) under the mandate in Article 32 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 (Capital Buffers Regulations). The PRA explains that O-SIIs are firms that are systemically important in a domestic context and the criteria for identifying them are derived from Article 31 of the Capital Buffers Regulations.
The proposals would result in changes to the PRA’s Statements of Policy on “The PRA’s approach to identifying O-SIIs” and “Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU”.
Specifically, the proposals include:
- removing the European Banking Authority’s (EBA’s) scoring methodology from the O-SII identification process and deleting the EBA’s guidelines, such that O-SII identification is based solely on the PRA’s scoring methodology; and
- updating specific indicators and weights in the PRA’s scoring methodology for O-SII identification.
The PRA proposes that the implementation date for the changes would be on the date of publication of the final revised Statements of Policy. The PRA therefore expects to carry out the 2022 O-SII designation process under the revised approach and will publish the list of designated firms by 1 December 2022.
The deadline for responses is 22 September 2022.
PRA Consultation Paper: Amendments to the PRA’s approach to identifying other systemically important institutions (O-SIIs) (CP13/22)
