The PRA Rulebook: Part 4 and response to Chapter 1 of CP41/15

Published on 14 December 2015

The PRA Rulebook: Part 4 and response to Chapter 1 of CP41/15 – PS28/15

Background

This policy statement (PS) publishes final rules and feedback to responses following CP28/15 ‘The PRA Rulebook: Part 4’ and chapter 1 of CP41/15 ‘Occasional Consultation Paper’.

It is relevant to all PRA-regulated firms, the Society of Lloyd’s, its members, managing agents, auditors and actuaries of members. This PS is part of a series of publications that will redraft the Handbook inherited from the Financial Services Authority to create the PRA Rulebook.

The PRA Rulebook website was launched to house the PRA rules on the 29 August 2015. The new website has reshaped the presentation of the PRA’s requirements by improving online presentation and the functionality of the PRA’s rules.

Summary of content

Included in this PS are final rules following CP41/15 and CP28/15. Final rules from CP41/15 consolidate the Lloyd’s: Actuaries, Auditors and Financial Services Compensation Scheme (FSCS) Part and the Lloyd’s Part in the PRA Rulebook into a single Part (appendix 6). The final rules from CP28/15 transpose rules which are within scope of the PRA Rulebook Project, into the PRA Rulebook (appendices 1-5). Final rules set out in the appendices to the PS are as follows:

Appendix 1: PRA Rulebook: Financial conglomerates instrument 2015
Appendix 2: PRA Rulebook: CRR firms: Group risk systems instrument 2015
Appendix 3: PRA Rulebook: Regulatory reporting (Amendment No.1) instrument 2015
Appendix 4: Handbook (Rulebook Consequentials) instrument 2015
Appendix 5: PRA Rulebook: Interpretation (Amendment) instrument 2015
Appendix 6: PRA Rulebook: Solvency II firms, Non Solvency II forms, Non-Authorised Persons: Lloyd’s instrument (No. 2) 2015

The rules have been made by the PRA Board and will come into force on 1 January 2016, except for part of the Handbook (Rulebook Consequentials) instrument 2015 which will come into force on the 7 March 2016.

Policy Statement 28/15

Appendices

Published on 14 August 2015

The PRA Rulebook: Part 4 - CP28/15

Background

This consultation paper (CP) sets out proposals to redraft certain modules of the Prudential Regulation Authority (PRA) Handbook. It is the fourth in a planned series of consultations aimed at reshaping Handbook material inherited from the Financial Services Authority (FSA) to create a Rulebook, containing only PRA rules. The PRA Rulebook will appear in a new online website in 2015 and, until then, will appear on the existing Handbook site in PDF form. Detailed proposals for the presentation of the online Rulebook were outlined in Chapter 10 of CP8/13.

The proposals in this CP are relevant to all PRA firms.

This CP seeks views on, amongst other proposals:

replacing the rules set out in Chapter 3.1 (Cross sector groups) of the General Prudential sourcebook (GENPRU) and GENPRU 3 Annex 1 (Capital adequacy calculations for financial conglomerates) with a new Rulebook Part ‘Financial Conglomerates’;
replacing the rules relevant to banking and investment groups set out in GENPRU 3.2 (Third country groups) with a new Chapter ‘Third country groups’ in the Groups Part;
replacing the rules set out in SYSC 12.1 (Group risk systems and controls requirements) with a new Rulebook Part ‘Group risk systems’; and
replacing the rules set out in SUP 16.3 (General provisions on reporting) and SUP 16.6 (Compliance reports) of the Handbook with new rules in the Regulatory Reporting Part.

Responses

This consultation closed on Friday 13 November 2015.

Consultation Paper 28/15 (including appendices)