UNITED KINGDOM: Postponement of the Joint BoE/FCA Survey into Open-Ended Funds

Monday March 23 2020

The Bank of England has announced that the planned survey covering c.300 funds has been delayed until further notice, with a subsequent impact on the FCA consultation that would have followed.

The Bank and PRA have also identified a number of other prudential measures that they plan to adapt in order to alleviate operational burdens on firms and FMIs at the current time. These have been informed by internal analysis and discussions with firms and other stakeholders.

With respect to supervisory engagement with firms and FMIs:

Supervisory programmes for individual firms and FMIs: Bank and PRA supervisors will review their work plans so that non-critical data requests, on-site visits and deadlines can be postponed, where appropriate. This includes pausing the skilled persons Section 166 reviews relating to the reliability of banks’ regulatory returns that were announced in October 2019. In doing so the PRA will have regard to the flexibility provided under the relevant regulatory regimes, for example in the Capital Requirements Regulation and Solvency II.

This will allow supervisory engagement to focus on the most important matters relating to financial stability, the safety and soundness of firms, and protection of policyholders, including the impact of Covid-19. In doing so, the BoE will continue closely to coordinate their supervisory work on Covid-19, wherever possible, with the FCA and other authorities.

Senior Manager Function (SMF) applications: The PRA will review its approach for considering and processing applications with a view to reducing the burdens involved during current events.

The Bank and PRA will also review its programme of regulatory change. Where appropriate, they will postpone non-critical work at the current time to allow firms and FMIs to focus on their safety and soundness, the protection of policyholders and delivering their functions.

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