Policy Statement 31/18 was published this morning. Contains a lengthy section addressing comments to the proposals of CP 13/18.
The main part which will interest the market is the removal of the proposals relating to the TMTP (paragraphs 3.9A, 3.24 and 3.25). Para 3.25 is the one that reads:
3.25 Although the PRA does not consider the purpose of TMTP to be a transitioning of an updated assessment of risk, the PRA does recognise that the consequences of applying the new calibrations in the proposed updates to SS3/17 when calculating their ICAS illiquidity premium may be significant for some firms. In such cases, the PRA would consider making a proportionate allowance for that impact on the firm. The PRA would expect this to be a short phase-in period, dependent on the circumstances of the firm, unlikely to exceed three years in any event. The PRA would not expect firms to require this phase in period in relation to calculating their ICAS illiquidity premium consistently with principles (ii)-(iv) in SS3/17 already published in July 2017.
The updated CP is here
We will comment later!