Deloitte comments on the PRA’s consultation paper on the implementation of UK bank ring-fencing
6 October 2014
Clifford Smout, Partner in Deloitte’s EMEA Centre for Regulatory Strategy said:
“The PRA has put UK bank ring-fencing firmly back in the industry’s court with its consultation on the approach to its rules.
“The PRA’s task is unenviable – to transform a highly complex policy into practice – and this is reflected in the number of issues the paper leaves open for industry to solve. Indeed, it is clear that responsibility for finding solutions will lie primarily with the banks, who will then need to demonstrate compliance to the PRA.
“The PRA is asking for a ‘preliminary’ plan by the turn of the year. Given that several of the major banks have been engaged in planning for the ring-fence for some time now, in broad terms this should be achievable, but the banks will have to make the transition from exploring options to making decisions. Given the potential scale of change required by ring-fencing, plans cannot be ‘preliminary’ for too much longer.”
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