This SS has been published as part of joint Bank of England and PRA Policy Statement 5/19 ‘The Bank of England’s amendments to financial services legislation under the European Union (Withdrawal) Act 2018’.
HM Treasury set out its intention to ensure that the UK continues to have a functioning financial services regulatory regime regardless of the outcome of negotiations with the EU. This approach is to ensure that EU-derived laws and rules that are currently in place in the UK will continue to apply at the point of exit to the extent that they remain operable in a UK regime. Changes will only be made to those laws or rules that would otherwise not operate appropriately. This provides continuity and certainty for firms as the UK leaves the EU.
This supervisory statement (SS) elaborates on how firms should interpret existing non-binding PRA regulatory and supervisory materials in light of the UK’s exit from the EU. This includes the PRA’s existing approach documents, statements of policy (SoPs), and SSs – these are collectively referred to as the PRA’s ‘non-binding materials’.
This SS is relevant to all PRA-regulated firms operating, or intending to operate, in the UK. The PRA may issue further expectations in relation to this topic.
Setting out the PRA’s approach to its non-binding materials after the UK’s withdrawal from the EU helps provide certainty to firms. Except for SS18/15 ‘Depositor and dormant account protection’, the PRA is not proposing to make line-by-line amendments to its non-binding materials at this stage to reflect the UK’s withdrawal from the EU.
Implementation and next steps
This Supervisory Statement is effective from the date of the UK’s withdrawal from the EU.