On June 13, 2018, the U.K. Prudential Regulation Authority published a Policy Statement on reporting MREL and an updated Supervisory Statement "Resolution Planning," following a consultation which ran from January 8 to April 9, 2018.
The PRA is implementing its proposals largely as consulted on. However, due to queries from some respondents on the frequency of reporting and on the draft reporting templates and guidance, the PRA has made some minor amendments to provide clarification on the reporting templates and guidance and some changes to reflect the fact it will take a more proportionate approach to the frequency of reporting so as to not place a disproportionate burden on certain firms.
The updated Supervisory Statement on Resolution Planning sets out the PRA's expectations on the information firms should provide in relation to their MREL requirement. The PRA will share the information received with the U.K.'s resolution authority, the Bank of England. The PRA intends to use the information received to monitor a firm's progress in complying with its MREL requirement and to assess whether a firm is, or is likely to be, in breach of its MREL requirement.
The updated Supervisory Statement will apply from January 1, 2019. Returns must be submitted using the BoE's Electronic Data Submission portal, BEEDS, which the BoE will make available by that time.
The Policy Statement (PRA PS 11/18) is available at: https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/policy-statement/2018/ps1118.pdf, the reporting guidance and links to reporting templates are available at: https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/policy-statement/2018/ps1118app2guidance.pdf, the updated Supervisory Statement (SS 19/13) is available at: https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/supervisory-statement/2018/ss1913-update.pdf and details of the January 2018 consultation are available at: https://finreg.shearman.com/uk-prudential-regulation-authority-proposes-mrel-.
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