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Prudential regulation

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

Prudential regulation rules require financial firms to hold 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.

The Prudential Regulation Authority (PRA) at the Bank of England is responsible for this prudential regulation and supervision of around 1,500 banks, building societies, credit unions, insurers and major investment firms.

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5 December 2019: The Bank of England (Bank), Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) published:

Building operational resilience: impact tolerances for important business services - Press release
a joint foreword and summary of ‘Building operational resilience: Impact tolerances for important business services’
three Bank of England consultation papers relevant to financial market infrastructures
PRA Consultation Paper (CP) 29/19 ‘Operational resilience: Impact tolerances for important business services, relevant to all UK banks, building societies, PRA-designated investment firms (banks), UK Solvency II firms, the Society of Lloyd’s and its managing agents (insurers).
FCA CP19/32 available on the FCA website

The PRA also published CP30/19 ‘Outsourcing and third party risk management’, relevant to all UK banks, building societies and PRA-designated investment firms, insurance and reinsurance firms and groups in scope of Solvency II, including the Society of Lloyd’s and managing agents, and branches of overseas banks and insurers.

These consultations close on Friday 3 April 2020.

26 November 2019: We published a press release and final notice on ‘PRA fines Citigroup’s UK operations £44 million for failings in their regulatory reporting governance and controls’.

18 November 2019: We (the PRA) and the Financial Conduct Authority (FCA) published ‘Decision Notices given to former CEO who paid excessive remuneration to his wife to reduce his tax liability’.

PRA Regulatory Digest

See all prudential regulation communications published in the last month

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.