On October 6, 2014, the PRA launched a consultation on implementation proposals of the ring-fencing requirements relating to legal structure of banking groups, governance arrangements for ring-fenced bodies and the continuity of services and facilities to ring-fenced bodies. The PRA intends to consult further during 2015, including on issues such as intra-group arrangements and concessions, prudential requirements and standards as well as disclosure and reporting. Responses to the PRA consultation are due by January 6, 2015. The PRA aims to publish its final rules and supervisory statements during the first half of 2016. The ring-fencing rules will be applicable from 2019. As an interim measure, the PRA is requesting all firms that expect to be subject to the ring-fencing rules by 2019 to submit a preliminary plan to the PRA and the Financial Conduct Authority by January 6, 2015 to assist the regulators in deciding on the approach to implementation. The preliminary plans should include financial statements, a plan for transitioning to preferred legal and operating structures, any new regulatory authorizations, permissions, waivers or Part VII transfers that may be required as well as key milestones and decision points.
The consultation paper is one of four papers published by the PRA relating to resolution and resilience. The other papers consider proposals on operational continuity during resolution, depositor protection and insurance policyholder protection.
The PRA consultation paper is available at: http://www.bankofengland.co.uk/pra/Documents/publications/cp/2014/cp1914.pdf.
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