Shearman & Sterling LLP | Financial Regulatory Developments Focus | <p ><font >UK Prudential Regulation Authority Delays Implementation of Pillar 2 Reporting Requirements</font ></p >
Financial Regulatory Developments Focus
  • UK Prudential Regulation Authority Delays Implementation of Pillar 2 Reporting Requirements


    The UK Prudential Regulation Authority has announced that it is postponing by six months the introduction of a new liquidity reporting template, PRA110. PRA110 is intended to capture information on cashflow mismatch risk within the Pillar 2 framework.

    The Capital Requirements Directive gives national regulators discretion to set additional Pillar 2 liquidity requirements. The Pillar 2 framework involves additional capital requirements set through regulatory discretion and complements the Pillar 1 Liquidity Coverage Ratio requirements, by capturing those liquidity risks that are either not captured or not fully captured under Pillar 1. The PRA consulted in July 2017 on a draft liquidity reporting template for CFMR, to be numbered PRA110. PRA110 will build on the European Banking Authority's maturity ladder reporting template, which will apply from March 2018, by including additional columns and rows to capture additional information. The PRA originally proposed that the PRA110 template would be implemented on January 1, 2019 and that, on implementation of PRA110, it would terminate the old FSA047 and FSA048 returns.

    Having considered the responses to its July 2017 consultation, the PRA proposes to postpone the introduction of PRA110 to July 1, 2019. This will mean that the termination of forms FSA047 and FSA048, which is linked to the introduction of PRA110, is also postponed by six months. Interim reporting which was scheduled to start in March 2018, with the introduction of the EBA's maturity ladder reporting requirements, will also be delayed by six months, to September 2018.

    View the PRA announcement.