How to streamline UK liquidity reporting (CP19/24)
On 11 December 2024, the PRA released consultation paper 19/24 with the goal of closing liquidity reporting gaps that became evident during market stress events.
PRAs aim is to strengthen liquidity risk management of large life insurers by:
- Introducing granular reporting templates on cash-flow, facilities, and derivatives
- Allowing daily submissions in time of crisis
- Simplifying reporting for internal model firms
- Aiming to reinforce early warning systems and standardize oversight
The proposals concern introduction of four structured liquidity reporting templates to capture detailed data on exposures including cash-flow mismatches and committed facilities.
Reports will need to be submitted monthly, quarterly, and annually, with the PRA having the authority to request daily submissions in times of stress.
Granular and frequent reporting will allow the PRA to better supervise liquidity risk, perform peer comparisons, and potentially consider introducing minimum liquidity requirements.
Implementation is planned for 31 December 2025, with first reporting under the framework likely from 1 January 2026.
Current systems are often not built to capture and report this level of detail, meaning system upgrades or new tools will be necessary. Controls will need to be redesigned to ensure and demonstrate data-quality.
Daily submissions during stress events will require automated processes, with appropriate resourcing in finance, treasury, actuarial, and risk teams.
Streamline liquidity reporting with CCH® Tagetik
CCH® Tagetik offers an out-of-the-box solution which eases the entire process from datacollection, review, calculation up until reporting of the numbers to the PRA.
In addition, the CCH® Tagetik intelligent platform allows insurance entities to run data-driven scenarios and stress tests and calculate minimum liquidity requirement.
Key benefits
- Guarantee to stay up-to-date with changes in regulations
- Solutions covers CP19/24 reporting requirements
- Improved audit-trail, faster data-collection and more reliable reporting
- Workflow features to support the reporting process
- Processing large (assets) volumes of data at short runtimes
- Simpler system architecture with less systems, tools and spreadsheets
- Flexibility to add insurance entity specific requirements
- Utilize CCH® Tagetik intelligent platform features to integrate liquidity reporting with other reporting into a single one-version-of-the-truth platform covering PRA requirements, IFRS, management reporting as well as planning and budgeting
How we can help
Our experts combine knowledge of the UK liquidity reporting requirements with technical capabilities of implementing CCH® Tagetik.
We can support you with:
