This Prudential Regulatory Authority (PRA) policy statement (PS) issues the final rules and a supervisory statement relating to the internal governance arrangements of UK branches of non-EEA banks and PRA designated investment firms, known as ‘third country branches’. The PRA consulted on draft rules and a supervisory statement in Consultation Paper (CP) 17/15: ‘The PRA Rulebook: Part 3’. This PS also publishes the final rules and a supervisory statement in response to CP3/16 ’Occasional Consultation Paper’.
Chapter 2 of this PS is relevant to all third country branches. Chapter 3 is relevant to all PRA-authorised firms. All the rules and supervisory statements set out in the appendices apply from 7 March 2016. This publication forms part of the project to redraft the Handbook inherited from the FSA to create the PRA Rulebook containing only PRA rules.
The material on the internal governance of third country branches has been finalised separately from the main response to CP17/15 which was published in PS19/15 on 3 August 2015. Finalisation of the rules and the supervisory statement was delayed to ensure amendments are included to reflect aspects of the Senior Managers and Certification regimes (SM&CR) relating to third country branches, that would have superseded or otherwise affected these proposals.