PRA publishes supervisory statement on internal model reporting codes and components. The UK Prudential Regulatory Authority (PRA) published SS37/15, a supervisory statement that sets out how it expects firms to submit information using product reporting codes when applying to use an internal model or partial internal model. SS37/15 applies to all UK insurance firms and groups within the scope of Solvency II and to the Society of Lloyd’s. (8/17/2005) PRA supervisory statement.
Proposed changes to PRA handbook. The PRA set out in a consultation paper proposals to redraft certain modules of the PRA handbook. This is the fourth in a planned series of consultations aimed at reshaping Handbook material inherited from the Financial Services Authority to create a Rulebook containing only PRA rules. The PRA Rulebook will appear in a new online website in 2015 and, until then, will appear on the existing Handbook site in PDF form. Comments should be submitted by November 13, 2015. (8/14/2015) The PRA Rulebook: Part 4.
PRA proposed technical changes. The PRA published an Occasional Consultation Paper (OCP) which proposes miscellaneous and minor amendments to PRA rules and supervisory statements. Comments should be submitted by November 14, 2015. (8/14/2015) Occasional Consultation Paper.
Investors push back against aggressive leveraged loan terms. Concessions have been made to a growing number of leveraged loans as investors recently clamped down on US-style documentation, according to a report in Reuters. (8/14/2015) Leveraged loans.
EBA publishes technical advice on protected arrangements in a resolution situation. In response to a request for advice from the European Commission, the European Banking Authority (EBA) issued its opinion on how to define what arrangements should be protected in a partial property transfer in resolution. The Opinion ensures full protection of well-established sources of refinancing such as secured debt, including securities lending and covered bonds, and of means of risk mitigation. (8/14/2015) EBA opinion.
ESMA recommends changes to EMIR framework. The European Securities and Markets Authority (ESMA) published four reports focused on how the European Markets Infrastructure Regulation (EMIR) framework has been functioning and providing input and recommendations to the European Commission’s (EC) EMIR Review. (8/13/2015) ESMA reports.
PRA publishes package on strengthening accountability for insurers and UK branches of non-EEA banks. The PRA, along with the Financial Conduct Authority (FCA), published their package on strengthening accountability for senior managers in insurance companies and UK branches of non-EEA banks. This completes the package of accountability reforms that will allow all PRA-regulated firms to prepare for the introduction of the Senior Managers Regime and Senior Insurance Managers Regime. (8/13/2015) PRA press release. Related FCA press release on Solvency II.
Financial Conduct Authority publishes a consultation on the Approved Persons Regime. The FCA published CP15/25: Changes to the Approved Persons Regime for insurers not subject to Solvency II: reforms for larger Non-Directive Firms, feedback on CP 15/15, forms, consequentials and transitional aspects. Comments should be submitted by October 12, 2015. (8/13/2015) FCA press release.
PRA publishes consultation paper on Solvency II reporting. The PRA published a consultation paper seeking feedback on a draft supervisory statement that sets out its expectations of firms where it has an option to specify a different approach to that published in the Implementing Technical Standards (ITS) for the Solvency II reporting templates and the Solvency II public disclosure templates. Comments should be submitted by September 21, 2015. (8/10/2015) Consultation paper.
Financial Conduct Authority publishes policy development update. The FCA published Policy Development Update - Issue 25, which provides information on, among other things, publications issued since the previous edition and an updated timetable for future publications. (8/7/2015) FCA press release.
European Commission adopts new rules on central clearing for interest rate derivatives. The European Commission adopted new rules that make it mandatory for certain over-the-counter (OTC) interest rate derivative contracts to be cleared through central counterparties. This decision takes the form of a Delegated Regulation. (8/6/2015) Delegated regulation. EC press release.
ESMA advises European Commission on implementation of CSD regulation.ESMA published a Final Report on the Technical Advice under the Central Securities Depositories (CSD) Regulation. (8/5/2015) Final report. ESMA press release.
EBA launches consultation on Regulatory Technical Standards. The EBA launched a consultation on Regulatory Technical Standards (RTS) on the procedures for excluding transactions with non-financial counterparties (NFCs) established in a third country from the own funds requirement for credit valuation adjustment (CVA) risk. The consultation runs through November 5th. (8/5/2015) EBA consultation.