PRA updates on Solvency 2: PRA has published feedback for general insurance firms on the standardised risk information data collection exercise issued in May 2014. (Source: PRA Updates on Solvency 2)

PRA updates credit risk mitigation statement: As part of the UK's implementation of the Bank Recovery and Resolution Directive (BRRD), PRA has amended its supervisory statement regarding credit risk mitigation (SS17/13). Draft legislation currently before Parliament addressing bail-in powers makes these powers subject to a general safeguard that would ensure that where relevant liabilities are subject to set-off or netting they may only be bailed-in on a net basis. This means the relevant contracts would have to be closed out to create a net liability, which the BoE could bail-in. PRA has now amended its Supervisory Statement to clarify that it would not expect a netting agreement to be an eligible form of credit risk mitigation under the CRR where a resolution authority has power to bail-in the liabilities in question on a gross basis. But it does not expect that the legal effectiveness and enforceability of a netting agreement would be adversely affected by a resolution authority having a power to bail-in the liabilities in question on a net basis. (Source: Credit Risk Mitigation Supervisory Statement)

PRA provides update on CRD4: PRA has updated its guidance on CRD4 to reflect its decision to start collecting intraday liquidity data on a more systematic basis. This increased data collection will build upon existing requirements to enable supervisors to monitor firms’ ability to meet payment and settlement obligations on a timely basis. The PRA intends to ask most UK banks, building societies and designated investment firms to start reporting information on their intraday liquidity positions from 1 July 2015. (Source: PRA - CRD4 updates)