In this consultation paper (CP), the Prudential Regulation Authority (PRA) sets out proposals to amend its policy on the settlement of enforcement action. This is by way of proposed amendments to Statement of Policy ‘The Prudential Regulation Authority’s approach to enforcement: statutory statements of policy and procedure’ (‘the PRA’s Enforcement Statement of Policy’).
This CP may be relevant to PRA-authorised persons, qualifying parent undertakings, persons who are or have been auditors or actuaries of a PRA-authorised person, senior managers and certified employees at firms, and all individuals involved in providing financial services at PRA-authorised persons. It will also be of particular interest to professional advisers who represent firms and individuals subject to PRA enforcement action.
In February 2017, the PRA and FCA published a joint Policy Statement ‘Implementation of the Enforcement Review and the Green Report’. This was in response to HM Treasury’s ‘Review of enforcement decision-making at the financial services regulators: final report’ (the ‘HMT Report’). The HMT Report made a number of recommendations, including regarding settlement policies and procedures (the ‘HMT recommendations’).
The PRA will consider all representations received within the consultation period. Any changes to the settlement discount scheme will apply to all cases from the date of publication of the final policy, with one exception: in relation to cases where the PRA has already concluded ‘Stage 1’ settlement discussions with the subject, without reaching a settlement, prior to publication of the final policy, the existing scheme will continue to apply.
Responses and next steps
This consultation closes on Monday 15 July 2019. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP10_19@bankofengland.co.uk.
Please note: The PRA will be hosting a roundtable for law firms on Tuesday 11 June 2019. The purpose of the roundtable is to discuss the proposals set out in CP10/19 and the related publications on the PRA’s approach to enforcement, answer questions, and receive initial responses on the CP. The roundtable will be hosted by Miles Bake, Head of Enforcement & Litigation at the Bank of England, and will primarily be of interest to law firms that represent subjects under investigation, or who work on PRA regulatory matters more generally. If you would like to register your interest in attending, please send your name, the name of your firm, your position, and contact details to CP10_19@bankofengland.co.uk by Friday 10 May. As we have a limited number of places available, we will review responses and confirm your attendance and further details by Friday 17 May 2019.