Posted on: May 26, 2021
Whistlebrook understands that the latest position with replacement of the Bank of England’s collection system, OSCA, is as follows.
- May 2021 – A further version of the bank’s taxonomy 3.4 is expected to be issued on 24 May. This update will be for review and comment. No change has been made to the planned publication of the final copy, due in late July. The taxonomy is currently planned to be included in a release of Wires towards the end of 2021.
- October 2021 – UAT windows will commence and it will be possible for firms to create items for testing purposes, without involvement of the bank.
- December 2021 – A small number of firms (deemed “pilot reporters”) will be moved from OSCA to BEEDS. The first report reference date to report to BEEDS, for those firms only, will be 31 December 2021.
- June 2022 – All firms will be onboarded by the end of that month and a permanent test environment will be available.
- Late Summer 2022 – A BEEDS interface is to be provided by the bank. Given that firms will be reporting to BEEDS prior to this time, it is understood that direct submissions from Wires will not initially be possible.
- September 2022 – OSCA will be removed from use.
Annual Benchmarking Exercise (for firms using internal models)
Firms will not be required to submit data for benchmarking exercises (2022 and 2023) for credit and market risks. According to a PRA publication, a new set of UK standards will be developed in due course. Further details can be found in the PRA statement.
UK Strong and Simple Regulation for Smaller Firms
The PRA did issue its promised discussion paper DP 1-21, setting out ideas on how the regulation might be developed. Whistlebrook understands that:
- Design and implementation is expected to take a “number of years”
- The new framework may mean small firms submitting more, rather than less, data in the future
- A consultation document will be issued in the Autumn of this year
- It is likely that a base level will be created and layers (each with additional requirements) placed on top. Firms will move through those layers depending on size, business model and risks.
Whistlebrook will keep a close watch on developments to ensure that its regulatory software can support firms affected by the new regime.
Product Sales Data Reporting
Firms are reminded that new versions of PSD001 and PSD007 will be required to be used for report reference date 30 June 2021 and beyond.
Mortgage Risk Weight Floors
Whistlebrook understands that PRA consultation paper 14-20 has proposed risk weight floors on UK residential mortgages under the internal models approach to credit risk. If the proposal is implemented, it will be effective from 1 January 2022.
Annual Return and Accounts – Building Societies and COVID 19
In light of the challenges presented by COVID 19, the Financial Conduct Authority advised that where a submission of the annual accounts is required by 31 October 2021, a delay of up to three months will be accepted. The source of this information can be found on the FCA website here.
This regulatory update is Whistlebrook’s understanding of the position as at 24th May 2021.