UK-based managers of banks outside the European economic area have just weeks to comply with a regulatory request from the Bank of England, a consultancy has warned.
Mark Spiers, head of wealth management and banks for regulatory consultancy Bovill, said branch managers had until 31 March to assure the Prudential Regulatory Authority they met key requirements.
Some banks operate UK branches rather than a full UK subsidiary to handle customer transactions.
In September 2014 the PRA announced rules to increase its oversight of these branches, as detailed in the 14-page supervisory statement Supervising International Banks: the Prudential Regulation Authority’s Approach to Branch Supervision.
This required a senior individual in the UK management team to make a yearly attestation, or signed personal assurance, that the branch complies with the regulator’s Senior Management Arrangements Systems and Controls handbook.
The FCA also uses attestations as a supervisory tool. In 2014 the City watchdog requested attestations from 59 businesses, including 10 small or medium-sized firms.
According to the FCA, attestations are most often used for risks that are unlikely to result in material harm to consumers or to have a negative impact on market integrity, and which the regulator believes firms can handle on their own or simply for confirmation that an issue has been resolved.