UK: UK Prudential Regulator Consults On Revisions To Supervisory Reporting Requirements

On September 12, 2018, the U.K. Prudential Regulation Authority launched a consultation on changes to the PRA's reporting requirements to reflect proposed changes set out by the EBA in consultations launched in August 2018. The EBA proposes a number of revisions to the existing Implementing Technical Standards on the supervisory reporting requirements under the CRR. These include proposed revisions to the financial reporting (FINREP) annexes of the ITS, which add new reporting requirements for non-performing and forborne exposures, amend the reporting of profit or loss items (in particular on expenses) and amend the reporting on leases following International Financial Reporting Standard 16. Proposed revisions to the common reporting (COREP) annexes relate to the Liquidity Coverage Requirement for credit institutions.

The PRA's proposals are relevant to U.K. banks and building societies. Alignment of the PRA's reporting requirements requires the PRA to make amendments to PRA reporting templates for ring-fenced banks, profit and loss statements and forecast capital data and also requires an extension of the existing FINREP templates to include the non-performing loan and forborne exposure templates contained in the EBA's consultations.

Comments on the consultation are invited by December 12, 2018. The PRA's proposals will be implemented on a date that corresponds with the implementation of the EBA's FINREP and COREP changes. This is currently expected to be March 2020.

The consultation paper (PRA CP 19/18) is available at: https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/consultation-paper/2018/cp1918.pdf, the consultation webpage is available at: https://www.bankofengland.co.uk/prudential-regulation/publication/2018/regulatory-reporting-eba-taxonomy-29, details of EBA's proposals for the FINREP framework are available at: https://finreg.shearman.com/european-banking-authority-proposes-revised and details of the EBA's proposals for the COREP framework are available at: https://finreg.shearman.com/european-banking-authority-proposes-revised-super.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.