Pillar III Disclosures

Pillar 3 Disclosures

The key objectives are to:

• Improve comparability and consistency of disclosures
• Promote identification of material risks
• Provide sufficient, and sufficiently comparable, information to enable market participants to assess over capital adequacy and allow comparison with peers

Pillar 3 disclosures represent additional information that supervisors, policyholders, investors and analysts can use to assess an institution’s overall capital adequacy. In the UK regulation, it applies to all Prudential Regulation Authority-authorised banks and IFPRU investment firms, authorised by the Financial Conduct Authority (FCA) and subject to the prudential rules in the FCA’s IFPRU sourcebook.

Quality and quantity of capital, loss absorption, buffers, ratios, as well as ICAAP, ILAAP, approaches to credit, operational, market risks have come under the spotlight and concentrated efforts over the last few years.  Consequently, there has been a lack of focus on Pillar 3 requirements in comparison to Pillars 1 and 2, and therefore less awareness around:

Our team can advise and support you in the following areas:

• Develop an institution-wide understanding of what is required for producing Pillar 3 disclosures
• Draft and implement Pillar 3 Framework Policy Statement and Procedures, addressing governance and reviewing internal control system
• Provide assurance to stakeholders over the accuracy of disclosure and the quality of the controls
• Ensure consistency between Pillar 3 Disclosures and other external financial reporting
• Design data governance
• Adaptsystems, including deciding between off-the-shelf Pillar 3 reporting software and in-house data warehouse

For more information about our capabilities please contact us.