As promised in 2016, the Prudential Regulation Authority (PRA) is now undertaking a cross-firm review of the completeness and accuracy of COREP returns. The first reviews are likely to focus on the 31 December 2016 returns and continue to the end of the year.
The PRA’s reviews are to be conducted under Lots C (Controls and Risk Management Frameworks) and F (Prudential Deposit Takers) of the s166 Framework. The Skilled Person will be required by the PRA to provide a ‘reasonable assurance’ opinion on the returns as they report back to the PRA. It is likely the firms selected by the PRA for review have been selected using a risk-based approach.
In 2016 many firms commissioned an independent review of their COREP returns following a letter from the PRA and in anticipation of the cross-firm review. Firms that did commission independent reviews are likely to be able to take some comfort from this as the PRA rolls out the cross-firm review.
What you need to do:
- If the PRA has issued your firm with a s166 Requirements Notice you will be required to put forward a Skilled Person from the PRA panel. Mazars is on the PRA Skilled Person panel for these reviews and our experts are available should you wish to discuss the s166 process further.
- If your firm commissioned an independent review of the COREP reporting revisit the reports and findings and ensure that corrective measures have been implemented.
- If your firm did not commission an independent review of COREP reporting and you have not been issued with a s166 Requirement Notice consider whether an independent review would be beneficial.
- Consider whether your team could benefit from training around COREP reporting.
- Ensure your processes and controls are appropriately recorded and documented, including the board approval process.