D1/2019: Matters related to Pillar 3 disclosure requirements framework

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1. Introduction 1.1 As part of its process to update legislation with recent developments in the Pillar 3 framework, the PA is proposing amendments to regulation 43 of the Regulations to remove the disclosure requirements currently specified in regulation 43 of the Regulations. 1.2 This directive serves as a single reference point for the respective disclosure requirements applicable to banks. 1.3 The BCBS has issued separate documents related to disclosure requirements. Following the completion of the first phase review to the framework the BCBS issued ‘the revised Pillar 3 disclosure requirements’ in 20151 and following the completion of the second phase of the review of the Pillar 3 framework the BCBS issued ‘the consolidated and enhanced framework’ in 20172. 1.4 The BCBS issued a document on ‘Pillar 3 disclosure requirements – updated framework’ in December 20183. The updated framework sets out the disclosure requirements issued by the BCBS. The PA hereby informs banks that the disclosure requirements in the latest updated framework will be communicated at a later date through an updated directive. 1.5 The aforementioned documents issued by the BCBS serve as the current framework and have consolidated all the existing BCBS’s Pillar 3 disclosure requirements. 1.6 During August 2018, the BCBS issued a technical amendment to the rules text relating to additional Pillar 3 disclosure requirements4 for those jurisdictions implementing an expected credit loss (ECL) accounting model as well as for those jurisdictions adopting transitional arrangements for the regulatory treatment of accounting provisions. 1.7 The provisions of this directive are not related to any disclosure requirements that may be specified by the Johannesburg Stock Exchange Limited (JSE) in respect of the Stock Exchange News Service (SENS) from time to time.
2. Directive relating to general requirements In accordance with the provisions of section 6(6) of the Banks Act 94 of 1990, banks are hereby directed as follows: 2.1 General 2.1.1 With regard to retrospective disclosures, templates which require the disclosure of data points for current and previous reporting periods, the disclosure of data points for the previous period is not required when metrics for new standards are reported for the first time. 1 Available online at: https://www.bis.org/bcbs/publ/d309.pdf 2 Available online at: https://www.bis.org/bcbs/publ/d400.pdf 3 Available online at: https://www.bis.org/bcbs/publ/d455.pdf 4 Available online at: https://www.bis.org/bcbs/publ/d446.pdf