June regulation update

Forecast Capital + PRA101 to PRA103

The Bank of England’s BEEDS system will be used to collect data submissions of the forecast capital + returns. The decision to use BEEDS currently means that direct system to system transmission of data is not possible. BEEDS currently does not accept such transmissions. Therefore firms will be required to manually upload their XML file into BEEDS.

The date of introduction of these returns is 1st October, but the effective time for a firm will be dependent on its accounting year.

A consultation paper was issued by the Bank of England in June, in relation to requiring returns to be in units rather than in thousands.

 

Whistlebrook understands that only one of PRA101 to PRA103 will be applicable to a firm.

 

Assets >=£320bn >=£50bn and  <£320bn >£5bn and <£50bn <=£5bn
Retail Deposits >=£50bn >=£50bn    
Submission Required PRA101 PRA101 PRA102 PRA103
Frequency Monthly Quarterly Semi Annually Annually

 

Submissions will be required at UK consolidated and individual firm levels.

PSD007

A new version of Product Sales Data template PSD007 has been introduced and is effective from 1st April 2017. This change is to incorporate reporting of second charge mortgages. The return for the period 1st January to 30th June may require a firm to submit the new version and the prior one. That requirement will be relevant where a mortgage has been closed before 1st April 2017.

Changes to COREP and AMM

 

AMM

With effect from report reference date 31st March 2018, the maturity ladder C66 will be re-introduced.

COREP Sovereign Exposures

A new template C33 is to be implemented for the collection of data on sovereign exposures by country.

Whistlebrook understands that where the exposures are at least 1% of an institution’s receivables, only then is a submission required.

If non-domestic sovereign exposures are 10% or more of total sovereign, then a breakdown by country is required. Otherwise, only data for domestic and total sovereign exposures need be reported.

COREP Operational Risk

C17.00 will be removed and replaced by new forms C17.01 and C17.02. Information on the impacts of operational losses in earlier years will be required as well as details of new events, in C17.01.

C17.02 requires details of the largest losses. The number of such losses is capped at 17 where a loss exceeds €100,000 but is below €10million. Greater losses to be reported is to be capped at 10.

Whistlebrook understands that under the Basic Indicator Approach, a firm will be required to submit both C17.01 and C17.02 where:

  • A firm’s asset size exceeds €30billion or
  • An institution’s assets exceed €5billion and 20% of the GDP where it was established or
  • A parent has subsidiaries that operate in a different EU country to that in which the head office is located and consolidated assets exceed €5bn and at least 20% of them relate to activities in another EU member state