PRA Regulatory Digest – March 2023

The Prudential Regulation Authority (PRA) has published the latest version (March 2023) of its monthly regulatory digest. The digest outlines the Authority’s ongoing regulatory activities ranging from the launch of consultations, to the issuance of policy statements, to the implementation of regulatory changes and provides links to corresponding (legal) documents. The regulatory digest presents a viable source of information to stay up-to-date on regulatory issues and to ensure preparedness for upcoming changes as it furnishes a briefly summarized overview of all relevant ongoing issues.
This latest version presents the following highlights:
– The issuance of Policy Statement PS3/23 as regards the „Management Expenses Levy Limit 2023/24“ for the Financial Services Compensation Scheme (FSCS) in which the PRA states that it has received no comments on its corresponding consultation and that it will thus proceed as proposed and set the limit at £109.8 million, which is the maximum amount that may be levied upon firms as regards the FSCS without having to further consult with market participants on additional fees (please see EventID 20440 in this context for more information).
– The issuance of Discussion Paper DP1/23 or DP23/3 of the FCA on the effectiveness of the current Senior Managers & Certification Regime (SM&CR) in which both the PRA and the Financial Conduct Authority (FCA) seek feedback as to the scope of the current regime and potential improvements (please see EventID 20438 in this context for more information).
– The issuance of Policy Statement PS2/23 as regards „Depositor Protection“ in which the PRA concluded changes to the PRA rulebook for the purpose of safeguarding funds of customers of e-money institutions, authorized payment institutions, small payment institutions, and credit unions by bringing such funds under the remit of the Financial Services Compensation Scheme (FSCS) in case of failure of a custodian institution (please see EventID 20526 in this context for more information).
– The launch of Consultation Paper CP6/23 as regards „non-performing exposures capital deduction“ in which the regulator seeks to significantly simplify the reporting of non-performing exposures by removing the Common Equity Tier 1 (CET1) deduction requirement for NPEs that aren’t adequately accounted for and by removing or modifying corresponding reporting templates to be filed by institutions (please see EventID 20142 in this context for more information).