Digital Advisory & Compliance, Regulatory Watch, Regulatory WatchSFDR Reform Advances: The European Parliament Publishes Its Position on SFDR 2.0
On March 31, the Prudential Regulation Authority (PRA) of the Bank of England (BoE) has issued a Public Working Draft (PWD) detailing the technical implementation of proposals from the Consultation Paper CP19/24 – "Closing liquidity reporting gaps and streamlining Standard Formula reporting." This initiative aims to address liquidity reporting gaps for large life insurers with significant exposures to derivatives or securities involved in lending or repurchase agreements.
Let's talk how we can help your business.
Connect to a new world of efficiency by utilizing cleversoft’s business solutions.
On March 31, the Prudential Regulation Authority (PRA) of the Bank of England (BoE) has issued a Public Working Draft (PWD) detailing the technical implementation of proposals from the Consultation Paper CP19/24 – Closing liquidity reporting gaps and streamlining Standard Formula reporting. This initiative aims to address liquidity reporting gaps for large life insurers with significant exposures to derivatives or securities involved in lending or repurchase agreements
The proposed reporting requirements would apply to solo Solvency UK firms whose average assets (excluding those held for index- or unit-linked contracts) exceed £20 billion over the previous three quarterly reporting periods and that have material activity in these areas.
The reporting templates under the new taxonomy are categorized as follows:
- Cash Flow Mismatch Template: Captures expected and contractual cash inflows and outflows, unencumbered assets, and certain contingent liquidity demands.
- Cash Flow Mismatch (Short Form) Template: A condensed version of the above, intended for submission during firm-specific or general market liquidity stress events, potentially on a daily basis.
- Committed Facilities Template: Details all committed credit and liquidity facilities received from third parties.
- Liquidity Market Risk Sensitivities Template: Assesses the sensitivity of assets and collateral demands to changes in market conditions.
The PRA invites industry feedback on the proposed data point modeling and business validation rules by April 30, 2025.
The proposed entry into force for changes resulting from CP19/24 is set for December 31, 2025.
cleversoft is actively monitoring the developments. We will continue to keep you informed about Solvency UK and are happy to support you with your reporting compliance throughout the process.
cleversoft’s Solvency UK Service
Explore the Solvency UK Repporting Service to get more information on how cleversoft can optimize your reporting process.
In case you have of any questions feel free reach out to our experts via the contact form on our website. We will be happy to assist you.