November 2020 Regulation Update

Strong and Simple Regulatory Framework

Whistlebrook understands that earlier in November, the Deputy Governor of the Prudential Regulation Authority expressed an intention to implement a ‘strong and simple’ regulatory framework applicable to small banks and building societies. There was no specific target date for such regulation to take effect. However, were the framework introduced, there may be benefits such as cost savings for both firms and the regulator.

Flexibility on Regulatory Reporting Deadlines

The Financial Conduct Authority advised that the flexibility in submission dates in respect of regulatory returns will not apply for items due from 1 October 2020. The flexibility had been introduced in light of the effects of COVID 19.

Regulatory Reporting Changes

MLA G and REP017a

Revised versions of MLA G (Mortgage Administration: Business Profile) and REP017a (Fraudulent Transactions) are effective from report reference date 31 December 2020.

MLA G1

Also being introduced for that date is new form MLA G1 (Mortgage Administration: Second Charge Lending Business Profile). Whistlebrook understands that this new form has a quarterly frequency with submission due within twenty business days of the report reference date.

Branch Return

An updated version of the branch return (applicable to non-UK headquartered firms operating in the UK as a branch) will be effective from report reference date 31 December 2020.

Remuneration and Fraudulent Transactions

New European Banking Authority (EBA) remuneration and fraudulent transactions reporting will be applicable from reference date 31 December 2020.

Wires clients that will require these new templates, should contact their account manager to arrange the appropriate licence.

All the above changes to reporting have been incorporated into the latest version of Wires (i.e. 5.9).

Product Sales Data PSD001 and PSD007

These templates are being amended by the Financial Conduct Authority and will be effective from report reference 30 June 2021.

Capital Requirements Regulation 2 (CRR2)

The European Banking Authority’s taxonomy 3.0 will introduce the CRR2 reporting changes effective from 28 June 2021. A release of Wires will be made in advance of that date and include the requirements specified by the regulator.

The contents of CRR2 include new reporting of the Prudential Backstop (non-performing exposures), Counterparty Credit Risk, Net Stable Funding, MREL as well as adjustments to FINREP, Asset Encumbrance, Large Exposures and the Leverage Ratio.

This regulatory update is Whistlebrook’s understanding of the position as at 25th November 2020.