UK Prudential Regulator Finalizes Revisions to Pillar 2 Liquidity Reporting Frequency

The U.K. Prudential Regulatory Authority has published a Policy Statement, revised reporting rules and a revised Supervisory Statement on the PRA's approach to supervising liquidity and funding risks (SS 25/15). The changes amend the frequency with which firms must submit reports using the PRA’s liquidity reporting template. The obligation to make a report using the "PRA 110" template came into force on July 1, 2019 and obliges firms with total assets equal to or greater than €30bn to report details of their liquidity on a weekly basis, or, in the event of specific liquidity or market stress, on a daily basis, while firms with less than €30bn in assets should report monthly, or weekly in the case of specific liquidity or market stress. Following its consultation on the proposals earlier this year, the PRA has decided to implement the changes as proposed. The amendments introduce a further threshold for banks with total assets of £5bn or more but less than €30bn, which will need to submit a PRA 110 report on every business day for as long as there is a liquidity or market stress applicable to the bank in question. The implementation date for the amendments is May 1, 2020.

View the Policy Statement.

View the amended Supervisory Statement (SS 25/15).

View the rule changes.

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