Prudential regulation

The Bank of England prudentially regulates and supervises financial services firms through the Prudential Regulation Authority (PRA).

Who are we

As part of the Bank of England, we are responsible for the prudential regulation and supervision of around 1,500 banks, building societies, credit unions, insurers and major investment firms.

Our rules require financial firms to maintain sufficient capital and have adequate risk controls in place. Close supervision of firms ensures that we have a comprehensive overview of their activities so that we can step in if they are not being run in a safe and sound way or, in the case of insurers, if they are not protecting policyholders adequately. 

Find out more about what the PRA does

Latest news and publications

Latest Covid updates

For our latest Covid updates see Our response to coronavirus (Covid): regulatory measures for PRA-regulated firms

12 April 2021: We have set up the Holding company approvals page. This is aimed towards certain parent financial holding companies and parent mixed financial holding companies established in the UK, that are required by FSMA to apply to us, for approval or exemption from the new requirement, to be approved.

8 April 2021: We published CP8/21 ‘Regulated fees and levies: Rates proposals 2021/22’. This CP is relevant to all firms that currently pay PRA fees or are expecting to do so within the 2021/22 fee year. The consultation closes on Thursday 20 May 2021.

30 March 2021: As part of our work to transform data collection, GABRIEL will be unavailable from 6pm on Thursday 1 April 2021 until 8am on Tuesday 6 April 2021.

29 March 2021: Jointly with the Bank and FCA we published PS6/21 ‘Operational resilience: Impact tolerances for important business services’, including a new SS and SoP. This PS is relevant to UK banks, building societies, and PRA-designated investment firms as well as UK Solvency II firms, the Society of Lloyd’s and its managing agents. SS1/21 and the Operational Resilience Parts will be effective from Thursday 31 March 2022. 

We also published PS7/21 ‘Outsourcing and third party risk management’ including SS2/21 which will be effective from Thursday 31 March 2022.

26 March 2021: We published PS5/21 ‘Financial Service Compensation Scheme – Management Expenses Levy Limit 2021/22’. This PS is relevant to all PRA-authorised firms, but contains no material of direct relevance to retail financial services consumers or consumer groups upon which they might need to act. The FSCS MELL applies for the financial year ending Thursday 31 March 2022.

24 March 2021: We published PS4/21 ‘Depositor protection: Identity verification’. This PS is relevant to the Financial Services Compensation Scheme (FSCS), all PRA-authorised deposit takers, and insolvency practitioners (IPs). The changes outlined in this PS will take effect on Monday 29 March 2021.

17 March 2021: We published PS3/21 ‘PRA fees and levies: Holding company regulatory transaction fees’. This PS is relevant to PRA-authorised banks, PRA-designated investment firms, and their parent undertakings. The new rule will come into force from Friday 19 March 2021. 

16 March 2021: We published ‘Brave new world’ a speech by Sam Woods given at the Association of British Insurers.

11 March 2021: As part of our work to transform data collection, GABRIEL will be unavailable from 6pm on Friday 12 March 2021 until 8am on Monday 15 March 2021. 

9 March 2021: Jointly with the FCA, we published CP6/21 ‘Margin requirements for non-centrally cleared derivatives: Amendments to BTS 2016/2251’. This CP is relevant to PRA-authorised firms that are financial counterparties for the purposes of Article 2 of EMIR. This consultation closes on Wednesday 19 May.

PRA publications

Consultations papers, policy statements, supervisory statements and statements of policy can be viewed individually by following the links below. Policy statements are published on the same page as the accompanying consultation paper

Subject to any transitional relief, PRA supervisory statements and PRA statements of policy applicable before 11pm Thursday 31 December 2020 should be read in conjunction with Supervisory Statement (SS) 1/19 which sets out how the PRA expects firms to interpret EU-based references in non-binding PRA regulatory and supervisory materials after the UK’s withdrawal from the EU and the end of the transition period.

This page was last updated 09 April 2021

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