In making these instruments, the PRA aims to ensure that rules are correct, presented clearly and contain up-to-date references. Accurate Rulebook provisions allow the PRA to act in a way that advances the safety and soundness of PRA firms and specific to insurers, contribute to policyholder protection. For these reasons, the PRA believes that administration instruments are compatible with the requirement on the PRA to act in a way that advances its objectives (s.138J(2) of the Financial Services and Markets Act 2000 (FSMA)).
The PRA consults with the Financial Conduct Authority prior to undertaking consultations on administration instruments (s.138J(1) FSMA) and ensures that proposed corrections are consistent with the regulatory principles (s.2H FSMA). Such minor corrections are unlikely to impact on competition or on mutual societies (s.138K(2) FSMA) or give rise to any equality or diversity issues. Minor proposals are also unlikely to result in costs for firms, who will benefit from a more accurate Rulebook (s.138J(2)(a) FSMA).