Received 4 responses to CP, respondents generally supported purpose of TWD policy.
Respondents made a number of observations and requests for clarification as set out.
Firms will be expected to meet the expectations in SS1/22 by Monday, Mar. 3, 2025.
Supervisors will engage with firms throughout period until policy expectations in force.
Will want to understand that firms are making adequate preparations significantly in advance of the implementation date and have oversight of progress to implementation.
Expect dialogue to begin in H2 2022, exact timing to be confirmed by supervisors.
References related to UK’s membership of EU have been updated as part of this PS.
UK PRA issued consultation paper on proposed expectations in respect of firms’ engagement in trading activities that may affect the financial stability of the UK.
It also proposes that firms engaged in trading activities be able to carry out a full or partial orderly wind-down of activities in recovery and post-resolution restructuring.
TWD Option
Wind-down of trading activities, whether full or partial, or whether it would be carried out as a recovery or post-resolution restructuring option, is referred to as TWD option.
Proposals would result in a new supervisory statement on trading activity wind-down (App 1), statement of policy (App 2), and changes to SS9/17, Recovery Planning.
Amendments to SS9/17 are in respect of the orderly wind-down of trading activities.
Application
Expectations in this CP are relevant to all PRA-authorized UK banks, qualifying parent undertakings and PRA-designated investment firms engaged in trading activities, and relevant third country branches (more detail on expectations can be found in chp 2).
This consultation is also relevant to policymakers and practitioners that would expect to be involved in a firm’s resolution; it is not relevant to credit unions.
Implementation
PRA proposes that the implementation date for the changes would be Jan. 1, 2025.
Subject to consultation responses, PRA intends to publish its final policy in H1 2022.
Received 4 responses to CP, respondents generally supported purpose of TWD policy.
Respondents made a number of observations and requests for clarification as set out.
Firms will be expected to meet the expectations in SS1/22 by Monday, Mar. 3, 2025.
Supervisors will engage with firms throughout period until policy expectations in force.
Will want to understand that firms are making adequate preparations significantly in advance of the implementation date and have oversight of progress to implementation.
Expect dialogue to begin in H2 2022, exact timing to be confirmed by supervisors.
References related to UK’s membership of EU have been updated as part of this PS.
