What is structural reform reporting?
In July 2016, the Consultation Paper 25/16 was produced, setting out a proposal on the reporting requirements for ring-fenced bodies (RFBs). These reporting requirements form part of the wider structural reform initiative intended to improve the overall resilience of the United Kingdom’s largest banks.
The reporting of data will facilitate the Financial Conduct Authority's (FCA's) supervision of RFB sub-groups and monitoring their relationship with other parts of its group. The ultimate aim of this is to ensure banks are able to provide their core services, through protection from the risks associated with other parts of its banking group or the wider global financial system.
|PRA109 / RFB001||Intragroup exposures and credit risk mitigation||RFB sub-groups||Quarterly|
|PRA110 / RFB002||Intragroup funding transactions|
|PRA111 / RFB003||Core intragroup balance sheet, and, profit and loss items|
|PRA112 / RFB004||Detailed breakdown of intragroup balance sheet, and, profit and loss items||RFB sub-groups||Annually|
|PRA113 / RFB005||Report on VAT/Bank levy payable||RFB on behalf of the RFB sub-group||Annually|
|PRA114 / RFB006||Amount of excluded activities conducted by RFB sub-group members|
|PRA115 / RFB007||Usage of FMIs by an RFB and RFB sub-group members|
|PRA116 / RFB008||Total use of each exception by the RFB||Individual RFB||Annually|
The Prudential Regulatory Authority (PRA) has developed XBRL (eXtensible Business Reporting Language) taxonomies and proposes that firms submit structural reform data in XBRL format.
Banks required by the Financial services and Markets Act 2000 (FSMA), as amended by the Banking Reform Act, to ring-fence their ‘core activities’, will be subject to the reporting requirements initially outlined in CP25/16.
The eligibility criteria, therefore, are those banking groups with ‘core’ deposits in excess of £25 billion and those who expect to meet this threshold by the 1 January 2019.