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Home > Prudential Regulation Authority > The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP) - SS5/13 SUPERSEDED
 

The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP) - SS5/13 SUPERSEDED

19 December 2013

29 July 2015 - SS5/13 has been superseded by SS31/15, see:

The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP) - SS31/15

This Supervisory Statement outlines the expectations that the Prudential Regulation Authority (PRA) has of firms required to undertake the Individual Capital Adequacy Assessment Process (ICAAP) in accordance with the requirements set out in the PRA Rulebook.  It also explains how the PRA will subsequently undertake the Supervisory Review and Evaluation Process (SREP).

The ICAAP is that part of the Pillar 2 assessment undertaken by firms.  The ICAAP should allow firms to assess the level of capital that adequately supports all relevant current and future risks in their business.  In undertaking an ICAAP, a firm should be able to ensure that it has appropriate processes in place to ensure compliance with the CRDIV.  This requires firms to develop and use appropriate risk management techniques.

The SREP is that part of the Pillar 2 assessment undertaken by the PRA.  The supervisory statement points out some of the factors that the PRA will take into consideration when reviewing an ICAAP as part of the SREP and setting Individual Capital Guidance and the Capital Planning Buffer.

Supervisory Statement

The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP) - SS5/13 
This supervisory statement was updated on 27 May 2014. CP5/14 sets out the amendments made.

 

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