New Bank of England Rules Finalised
The Bank of England has finalised the Capital+ taxonomy and published it this week as v1.0.0. The new requirements cover capital forecasts and will need to be reported on by PRA authorised UK banks, building societies and designated investment firms from 1 October 2017.
The new taxonomy puts into effect additional rules that the UK regulator obliges deposit-takers and other, so called “CRD” firms to follow. Specifically this involves detailed forecasting by these financial institutions about the capital position they expect to hold over the upcoming three years.
The regulator is leveraging reporting concepts contained in the CRD IV reporting obligations imposed on EU banks by the European Banking Authority, which should make complying with these, additional requirements simpler and provide the regulator with rich comparative information. This modular approach is, in our view, entirely correct and is to be applauded. Find the taxonomy here. PDF representations of the templates are here.