December 5, 2016
The Financial Policy Committee (FPC) is required to establish a framework for an systemic risk buffer (SRB) that applies to large building societies and ring-fenced bodies (RFBs). The SRB Regulations require the PRA to apply the framework set out by the FPC on the SRB from 1 January 2019.
This SoP is relevant to ring-fenced and large building societies that hold more than £25 billion in deposits and shares – jointly ‘SRB institutions’.
The PRA will review this SoP in 2018, following the review of the FPC framework. Should the FPC framework be reviewed before that, the PRA will bring forward the review of this SoP accordingly. The PRA will then review this SoP at least every two years, as is mandated by the SRB Regulations.
The policy has been designed in the context of the current UK and EU regulatory framework. The FPC and PRA will keep the policy under review to assess whether any changes would be required due to changes in the UK regulatory framework, including those arising once any new arrangements with the European Union take effect.
The summary and related items can be found on the BoE website here.