Changes to REP017 – Payments Fraud Reporting
A new version (3.1) of REP017 will be effective from report reference date 31 December 2019. Whistlebrook understands that this version is to be used by smaller payment service providers i.e. those with total payment transactions in a year not exceeding €3million.
REP017a and REP017b are being introduced with effect from the same date. It is understood that these forms are applicable to larger service providers. REP017a should be used to report data for the first half of the calendar year. REP017b is to be used to submit fraud information for July through to December each year.
The layout of the form does not appear to have been subject to change.
Treatment of Salary Related Cash Flows
A question was raised with the PRA about how to include salaries, bonuses and national insurance contractual cash flows. Specifically, advice was sought on the following:
- If a firm would be expected to populate these payments into buckets such as ‘Greater than 5 years’? If population is required, how many years should be assumed and is inflation to be considered?
- Alternatively, is it just a case of allocating the accrued expense as at the balance sheet date?
The PRA has responded by saying that the question “…identifies a possible gap in an element of the PRA110 instructions derived from the C 66.01 (Maturity Ladder) introduced by the European Banking Authority. We have submitted this issue for Q&A to the EBA.”
Users should be aware that the weights to be entered in PRA110 within Wires need to be as percentages. Part of the submission process involves Wires converting the values to a ratio as required by the regulator. The same action is performed with liquidity coverage.
Updated PRA Liquidity Monitoring Metric (LMM)
The PRA issued an updated LMM in August. Firms should use this version if they wish to see how the PRA will interpret the data submitted. The LMM will be updated when the revised layout of PRA110 is introduced in January 2020.
EBA Validation Rules
A revised list of validation rules was issued by the EBA in September. The list includes those being deactivated with immediate effect due to errors made by the EBA and affect C 14.00, C 32.02 as well as FINREP. The changes will be included in WIRES®.
Other Regulatory Changes
Forecast Capital+ (PRA102 to PRA103) will include changes for the securitisation framework. The revisions to templates will be included in WIRES® and be applicable from March 2020.
EBA taxonomy 2.9 will be phased into Wires as required by the regulator.
|Area||Effective||Planned Availability in Wires|
|COREP||31 March 2020||January 2020|
|LCR and ALMM||30 April 2020||January 2020|
|FINREP||30 June 2020*||April / May 2020|
*It is understood that this date will be later for firms whose financial year does not match the calendar one.
The changes for FINREP will introduce new templates for non-performing loans and forborne exposures.
Firms with assets of more than €5bn and a non-performing loans ratio of at least 5%, both for the most recent two consecutive reporting periods, will be required to submit the new forms.