Prudential Regulation Authority Rulebook

1.1

This supervisory statement (SS) sets out the approach the Prudential Regulation Authority (PRA) expects firms to take when interpreting EU-based references found in reporting and disclosure requirements and regulatory transactions forms after the end of the transition period.

1.2

The UK’s membership of the EU came to an end on Friday 31 January 2020. The UK entered into a transition period lasting until 11pm on Thursday 31 December 2020, which is defined in UK law as ‘IP completion day’, during which EU law continued to apply to the UK.

1.3

The PRA has not made line-by-line changes to reporting or disclosure requirements, or regulatory transactions forms, as a result of the UK’s withdrawal from the EU and the end of the transition period, as it would not have been proportionate to do so. Instead, the PRA expects firms to interpret EU references in those templates and instructions in accordance with this SS after the end of the transition period. In certain cases, the PRA has updated references to Technical Standards that are being revoked by HM Treasury, and were contained in the CRR reporting and disclosure requirements. The PRA has replaced these references with references to the relevant PRA CRR Rules.

1.4

Chapter 2 outlines a general approach on this issue, which is in line with the approach taken more widely when onshoring European requirements. Chapter 3, 4 and 5 detail an expected approach on certain more specific issues. In any instance where the approach set out in these Chapters conflicts with the approach set out in Chapter 2, the approach set out in Chapters 3, 4 and 5 should take priority.

1.5

Chapter 6 sets out how the guidance included in this SS interacts with the general transitional relief.

1.6

Appendix 1 outlines which European Binding Technical Standards (BTS) and which parts of the PRA Rulebook are in scope of this guidance.