On July 7, 2016, the PRA published a Policy Statement on operational continuity in resolution. The Appendices to the Policy Statement set out a final Supervisory Statement and the PRA Rulebook: CRR Firms: Operational Continuity Instrument 2016. The Policy Statement provides feedback to responses to the PRA consultation on this topic in December 2015. Based on responses received, the PRA concluded that no significant changes were required to its proposals. The Supervisory Statement sets out its expectations of firms to ensure operational continuity of critical services to facilitate recovery actions, orderly resolution and post-resolution restructuring. Compared to the draft Supervisory Statement, the PRA has amended the financial resilience expectations by removing the capital expectation and stating that the Bank of England will consider whether a loss absorbing capacity should be allocated within groups to ensure operational continuity as part of the MREL regime.
The Operational Continuity Instrument 2016 sets out the final text of the new Operational Continuity Part of the PRA Rulebook and will come into effect on January 1, 2019.
The Policy Statement is available at: http://www.bankofengland.co.uk/pra/Documents/publications/ps/2016/ps2116.pdf, the Supervisory Statement is available at: http://www.bankofengland.co.uk/pra/Documents/publications/ss/2016/ss916.pdf and the Operational Continuity Instrument 2016 is available at: http://www.bankofengland.co.uk/pra/Documents/publications/ps/2016/ps2116app2.pdf.