The Capital Requirements (Amendment) (EU Exit) Regulations 2018

Article 458 (macroprudential or systemic risk identified at the level of a Member State) U.K.

201.  For Article 458 (macroprudential or systemic risk identified at the level of a Member State) substitute—

“Article 458 U.K. Enhanced prudential measures directions & recommendations: Interpretation

1.   In this Article and in Articles 458A to 458C—

‘enhanced prudential measures direction’ means a direction of the Financial Policy Committee under section 9H of the 1998 Act to a competent authority describing stricter measures in relation to a relevant prudential area than are required by this Regulation or any legislation made under it;

‘enhanced prudential measures recommendation’ means a recommendation of the Financial Policy Committee under section 9Q of the 1998 Act to a competent authority, describing stricter measures in relation to a relevant prudential area than are required by this Regulation or any legislation made under it;

‘enhanced prudential implementation action’ means action to comply with an enhanced prudential measures direction or enhanced prudential measures recommendation;

‘FPC’ means the Financial Policy Committee;

‘regulated person’ has the meaning given in section 9H(2) of the 1998 Act;

‘relevant prudential area’ means—

(i)

the level of own funds provided for in Article 92,

(ii)

the requirements for large exposures provided for in Articles 392 and 395 to 403,

(iii)

the public disclosure requirements provided for in Articles 431 to 455,

(iv)

liquidity requirements provided for in Part 6 or in the Liquidity Commission Delegated Regulation,

(v)

risk weights for targeting asset bubbles in the residential and commercial property sector, or

(vi)

intra financial sector exposures.

‘the 1998 Act’ means the Bank of England Act 1998 M1 ;

‘the Liquidity Commission Delegated Regulation’ means Commission Delegated Regulation (EU) 2015/61 of 10th October 2014 to supplement Regulation (EU) No 575/2013 of the European Parliament and Council with regard to liquidity coverage requirement for Credit Institutions, as it forms part of domestic law by virtue of section 3 of the European Union (Withdrawal) Act 2018, and as amended from time to time thereafter.

Article 458A U.K. Enhanced prudential measures

1.   Where the FPC issues an enhanced prudential measure direction or enhanced prudential measure recommendation, the competent authority may exercise its functions to introduce an enhanced prudential implementation action.

2.   An enhanced prudential implementation action shall have effect notwithstanding any provision to the contrary in this Regulation or any legislation made under it.

Article 458B U.K. Enhanced prudential measures: effect of revocation

1.   Paragraph 2 applies where—

(a) the FPC revokes an enhanced prudential measures direction in accordance with section 9J of the 1998 Act; or

(b) the FPC withdraws an enhanced prudential measures recommendation and notifies the competent authority of that withdrawal.

2.   A competent authority which has introduced an enhanced prudential implementation action must consider whether it is appropriate to cease to implement that action.

Article 458C U.K. Enhanced prudential measures: publication and application

1.   Once the Bank has published the relevant information concerning the enhanced prudential measure direction or enhanced prudential measure recommendation in accordance with section 9U and, where relevant, section 9V(3) of the 1998 Act, a competent authority must publish on its website the following information—

(a) the fact that it has introduced an enhanced prudential implementation action;

(b) any requirements of this Regulation or any delegated legislation made under it that the competent authority considered inconsistent with the enhanced prudential implementation action; and

(c) a statement that the relevant enhanced prudential implementation action shall have effect notwithstanding any provision to the contrary in this Regulation or any legislation made under it.

2.   Until the Bank has published the relevant information concerning the enhanced prudential measure direction or enhanced prudential measure recommendation in accordance with section 9U and, where relevant, section 9V(3) of the 1998 Act, the competent authority must take reasonable steps to bring the enhanced prudential implementation action to the attention of the regulated persons subject to it.

3.   A failure by the competent authority to publish information as required by paragraph 1 does not affect the validity, continuing operation or enforcement of the enhanced prudential implementation action to which the requirement to publish relates.”.

Commencement Information

I1 Reg. 201 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Marginal Citations

M1 1998 c. 11.