PRA has issued two consultations which form part of the post-crisis reforms to enhance the resilience and resolvability of firms: one on ring-fencing and one on operational continuity. These proposals aim to ensure that ring-fenced banks are protected from shocks originating in other parts of their groups, as well as the broader financial system, and can be easily separated from their groups in the event of failure:

  • CP37/15 sets out additional proposed ring-fencing policy, including in the areas of prudential requirements, intragroup arrangements and the use of financial market infrastructures. This consultation closes on 15 January 2016; and
  • CP38/15 proposes a new framework requiring firms to ensure the continuity of critical shared services. An addendum will be published to set the closing date for the consultation period.

(Source: BoE Consults on Structural Reforms to Financial System)