1 March 2018 – 28 February 2019
‘Prudential regulation, like annual reporting, is about looking both ways. This year we are turning to face new challenges – especially those related to EU withdrawal and operational resilience – while staying mindful of the lessons of the past’ – Sam Woods, Deputy Governor for Prudential Regulation and PRA CEO.
The business plan covers the requirements of paragraph 18 of Schedule 6A Bank of England Act and section 2E FSMA and paragraph 17(9) of Schedule 6A Bank of England Act. It includes:
- Foreword by Sam Woods, Deputy Governor for Prudential Regulation and PRA CEO (pages 5-6)
- Overview of responsibilities and approach (page 7)
- The PRA Strategy (pages 8-9)
- PRA Business Plan 2018/19 (pages 10-19)
- PRA Budget 2018/19 (page 20)
The PRA’s strategic goals for 2018/19 are to:
- have in place robust prudential standards comprising the post-crisis regulatory regime
- continue to adapt to changes in the external market and to hold regulated firms, and those who run them, accountable for meeting our standards
- ensure that firms are adequately capitalised, and have sufficient liquidity, for the risks they are running or planning to take
- develop our supervision of operational resilience in order to mitigate the risk of disruption to the provision of critical economic functions
- ensure that banks and insurers have credible plans in place to enable them to recover from stress events, and that we have a credible resolution strategy to manage a firm’s failure – proportionate to the firm’s size and systemic importance – in an orderly manner
- facilitate effective competition by actively considering the proportionality of our approach as it contributes to the safety and soundness of the UK financial system
- deliver a smooth transition to a sustainable and resilient UK financial regulatory framework following the UK’s exit from the European Union
- operate effectively by ensuring that resources are allocated to work that best advances our strategy and reduces the greatest risks to the delivery of our statutory objectives
This year we have published the strategy and business plan alongside the consultation on our fees and levies for the year ahead. The aim is to improve transparency by setting out what we will be doing in the year ahead, as context for the fees and levies consultation.
On Monday 9 April we also published:
- CP7/18 ‘Regulated fees and levies: rates proposals 2018/19’
- Letter from the Prudential Regulation Committee to the Chancellor, and its report on ‘The adequacy of PRA resources and the independence of PRA functions’
In the summer we will publish the PRA Annual Report for the year ended 28 February 2018.
The PRA Strategy and Business Plans for previous years are available in the PRA Annual Report and Accounts.