Shearman & Sterling LLP | FinReg | UK Prudential Regulator Announces Delays for Certain Regulatory Reporting and Disclosure Requirements
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  • UK Prudential Regulator Announces Delays for Certain Regulatory Reporting and Disclosure Requirements

    The U.K. Prudential Regulation Authority has announced a series of amendments to regulatory reporting and disclosure requirements applicable to U.K. banks, building societies, designated investment firms and credit unions, in light of the global COVID-19 pandemic. The PRA’s changes follow recent statements and recommendations made by the European Banking Authority, providing clarity on measures to mitigate the impact of COVID-19 on the EU banking sector.

    The PRA has announced that it will accept delays of up to one month of the following regulatory reporting requirements under the Capital Requirements Regulation and Bank Recovery and Resolution Directive, where the original remittance dates fall on or before May 31, 2020: (i) COREP Solvency; (ii) FINREP; (iii) liquidity – stable funding; (iv) large exposures and concentration risk; (v) leverage ratio; (vi) asset encumbrance; (vii) resolution plan reporting (excluding liability structure); and (viii) supervisory benchmarking exercise – credit risk. Neither the liquidity coverage ratio, Additional Liquidity Monitoring Metrics or information on firms’ liability structure are included in the forbearance.

    A delay of up to one month will also be accepted for the following PRA-owned regulatory reporting requirements where the remittance deadlines occur on or before May 31, 2020: (i) PRA 108 – Memorandum items; (ii) FSA 015 – Sectoral information; (iii) quarterly returns for Credit Unions; (iv) ring-fences bodies returns – RFB001 to RFB003; (v) PRA 104-107 – Forecast financial statements); and (vi) REP005 – 2019 High Earners’ Report. A two month delay will be accepted for annual reports and accounts. Firms are also encouraged to submit branch return data for H1 2020 using the old version of the branch return template, as opposed to the new version recently introduced by the PRA.

    The PRA may request more frequent submission of particular reports or additional reporting on key metrics on an ad hoc basis – firms affected by this will be contacted directly by Supervisors.

    The PRA has also announced that it will be flexible in assessing the reasonableness of any delays to Pillar 3 disclosures, in accordance with the EBA’s recommendations. Firms should inform supervisors and market participants if they anticipate delays to their Pillar 3 reports and provide reasons for such delays and an estimated publication date where possible.

    View the PRA's statement on regulatory reporting and disclosure amendments.

    View details of the EBA's statements on addressing COVID-19 for the EU banking sector.

    Details of other regulatory responses to COVID-19 are available at our COVID-19 Research Center.

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