The PRA has published a consultation paper setting out its proposed approach to designating entities within certain banking UK consolidation groups as responsible for ensuring that consolidated prudential requirements are met during a transitional period.
Relevant holding companies will need to apply for approval or exemption in accordance with The Financial Holding Companies (Approval etc.) and Capital Requirements (Capital Buffers and Macro-prudential Measures) (Amendment) (EU Exit) Regulations 2020.
The PRA is implementing its proposals through two rule instruments:
- the draft PRA Rulebook: CRR Firms: Designation (Consolidation) Instrument 2020, which creates the a new Designation Part of the PRA Rulebook; and
- the draft PRA Rulebook: Designation (Consolidation) (EU Exit) Instrument 2020, which amends the new designation rule so that it operates effectively in the UK following the end of the Brexit transition period.
The consultation closes on 16 December 2020.