Whole firm liquidity waivered

[Banking] The PRA’s proposed new liquidity regime

In relation to the Home State regulator's or third country competent authority's regime of liquidity regulation, the appropriate regulator will, before granting a whole-firm liquidity modification , ordinarily expect to be satisfied that: More Resources: The effect of that rule is that every firm is required to be self-sufficient in terms of liquidity adequacy and to be able to satisfy that rule relying on its own liquidity resources.

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whole firm liquidity waivered

It is also likely that an applicant firm will be asked to ensure as a condition of the modification, if granted, that the entities on which it is given permission to rely for the purpose of meeting the overall liquidity adequacy rule provide completed relevant data items to the appropriate regulator on a continuing basis. Your name. The appropriate regulator also anticipates that an intra-group liquidity modification would be made subject to a number of ongoing conditions and requirements.

It will not always be the case that an applicant firm wishes to rely on a parent undertaking , or other group entity, that is itself subject to a regime of liquidity regulation, whether or not equivalent to the appropriate regulator's. As a general principle, and unless persuaded otherwise by an applicant firm's arguments in support of its application for an intra-group liquidity modification , the appropriate regulator is likely to take the view that a firm's overseas subsidiary undertakings are likely to be constrained in their ability to provide meaningful levels of liquidity support to their parent undertaking.

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In relation to an applicant firm wishing to rely on liquidity support from a parent undertaking constituted under the law of a country or territory outside the United Kingdom , the appropriate regulator will, before granting an intra-group liquidity modification , ordinarily expect to have reached agreement with that parent undertaking that:.

In relation to an applicant firm wishing to rely on liquidity support from a parent undertaking constituted under the law of a country or territory outside the United Kingdom , the appropriate regulator will ordinarily expect to reach agreement with the authority that regulates that undertaking for liquidity purposes in a number of areas, including agreement that:.

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whole firm liquidity waivered

In granting a whole-firm liquidity modification the appropriate regulator therefore recognises that in certain circumstances a UK branch can have adequate liquidity resources in circumstances where the liquidity resources upon which the firm seeks to rely do not meet the criteria set out in BIPRU 12. In any event, the appropriate regulator will consider such applications on a case-by-case basis and will apply the approach outlined in BIPRU 12.

whole firm liquidity waivered

If any required field is left blank, it will not be possible to process your request. In considering such an application, the appropriate regulator will always take into account anything that it reasonably considers to be relevant for the purposes of assessing whether the statutory tests in section 138A of the Act are met.

whole firm liquidity waivered

BIPRU 12. In considering an application to vary, the appropriate regulator will consider afresh whether the tests in section 138A of the Act continue to be met for the grant of a whole-firm liquidity modification to the firm in question. In the new liquidity regime, the PRA proposes that firms have systems and controls in place to submit all liquidity COREP returns daily in case of stressed conditions. The appropriate regulator recognises that a firm incorporated in the United Kingdom and to which BIPRU 12 applies may wish to rely on liquidity support from another such firm.

whole firm liquidity waivered