UK Prudential Regulator Proposes Minor Policy Change For Systemic Risk Buffer

On November 22, 2018, the U.K. Prudential Regulation Authority published a consultation paper entitled "The systemic risk buffer: Updates to the Statement of Policy," proposing minor updates to its Statement of Policy, "The PRA's approach to the systemic risk buffer." The consultation is relevant to "SRB institutions," which are: (i) ring-fenced bodies within the meaning in the Financial Services and Markets Act 2000; or (ii) large building societies that hold more than £25 billion in deposits (where one or more of the account holders is a small business) and shares (excluding deferred shares).

The PRA proposes to amend the Statement of Policy to:

1. remove the statement that the PRA's approach to reviewing the SoP every two years is mandated by the SRB regulations;