BANKING

PRA policy statement on reporting requirements for ensuring operational continuity in resolution

The PRA has issued a policy statement (PS10/17) on reporting requirements for ensuring operational continuity in resolution. PS10/17 is relevant to UK banks, building societies and PRA-authorised investment firms to which the Operational Continuity Part of the PRA rulebook applies that receive critical services from one or more members of their group or from a business unit within the firm itself. Prudential Regulation Authority, 28 April 2017

FCA Handbook Notice 43

The FCA has published Handbook Notice 43, which sets out the changes made to the FCA Handbook under the following instruments, which were made by the FCA Board on the 27 April 2017:

  • Senior Management Arrangements, Systems and Controls (Remuneration Codes) (No 7) Instrument 2017 (FCA 2017/21).
  • Accountability and Whistleblowing (No 2) Instrument 2017 (FCA 2017/22).
  • Individual Conduct Rules (Non-Executive Directors) Instrument 2017 (FCA 2017/23).
  • Training and Competence Sourcebook (Appropriate Qualification Examination Standards) Instrument 2017 (FCA 2017/24).
  • Conduct of Business Sourcebook (Adviser Charging for Vertically Integrated Firms) Instrument 2017 (FCA 2017/25).
  • Insurance Act 2015 (Consequential Amendments) Instrument 2017 (FCA 2017/26).
  • Individual Accountability (Enforcement) (Duty of Responsibility) Instrument 2017 (FCA 2017/27).
  • Packaged Retail and Insurance-based Investment Products Regulation Instrument 2017 (FCA 2017/28).

The FCA consulted on these changes in a July 2016 consultation. Financial Conduct Authority, 28 April 2017

BoE working group recommends SONIA as sterling near risk-free interest rate benchmark

The BoE has announced in a press release that its working group on sterling risk-free reference rates has decided on SONIA as its preferred near risk-free interest rate benchmark for use in sterling derivatives and other financial contracts. Bank of England, 28 April 2017

 

PRA updates supervisory statement on internal governance

The PRA has issued an updated version of its supervisory statement (SS21/15) on internal governance in banks, building societies and PRA designated investment firms. SS21/15 has been updated in the light of the PRA publishing a second policy statement (PS9/17) on the implementation of the MiFID II Directive (2014/65/EU), to update references in paragraph 2.26 from MiFID to MiFID II. The update to SS21/15 takes effect from 3 January 2018. Prudential Regulation Authority, 28 April 2017

 

INSURANCE

PRA policy statement on maintenance of Solvency II transitional measure on technical provisions

The PRA has issued a policy statement on the maintenance of the "transition measure on technical provisions" under the Solvency II Directive (2009/138/EC) (PS11/17). In PS11/17, the PRA sets out its final policy relating to amendments to its May 2016 supervisory statement on recalculation of the "transitional measure on technical provisions" (SS6/16) to clarify its expectations for maintaining the calculation of the transitional measure on technical provisions (TMTP) both at outset and over the transitional period. Prudential Regulation Authority, 28 April 2017

INVESTMENTS AND FUNDS

PRA second policy statement on implementation of MiFID II

The PRA has issued its second policy statement (PS9/17) on implementation of the MiFID II Directive (2014/65/EU). PS9/17 follows on from the PRA's second consultation paper on MiFID II implementation (CP43/16), which it published in November 2016. Prudential Regulation Authority, 28 April 2017