The BoE is consulting on various proposals relating to operational continuity in resolution (OCIR) policy. The BoE proposes the following amendments:
Changes to the OCIR section of the Approach to Assessing Resolvability Statement of Policy (SoP)
- Amendments to the ‘Scope of operational continuity arrangements in the context of achieving the resolvability outcomes’ box in the OCIR section;
- Updates to how the BoE would assess whether firms meet the OCIR objective in paragraph 5.9; and
- Clarification of the BoE’s approach (consistent with paragraphs 2.5–2.6) to assessing whether hosted material subsidiaries meet the OCIR objective in the Resolvability Assessment Framework.
Changes to resolution measures, first announced in May 2020, aimed at alleviating operational burdens on PRA-regulated firms in response to the Covid-19 outbreak
The BoE proposes to update the following:
- The Approach to Assessing Resolvability SoP to reflect the proposal to extend the deadline for major UK banks and building societies to submit their first reports to the PRA on preparations for resolution to October 2021, and to extend the date for these firms to make public disclosures on their reports to June 2022;
- ‘Statement of Policy on valuation capabilities to support resolvability’ to reflect the proposal to extend the deadline for compliance with the SoP to 1 April 2021.
The consultation closes on 31 January 2021.