This Discussion Paper (DP) describes how we, the PRA, intend to approach policy-making as we take on wider rulemaking responsibilities under the Financial Services and Markets Bill (‛FSM Bill’). It is relevant for all PRA-regulated firms.
The FSM Bill will implement the outcomes of the Future Regulatory Framework (FRF) Review, which was established by the Government to consider how the UK’s financial services regulatory framework should adapt for the future, and in particular to reflect the UK’s position outside of the European Union. The proposals in this DP have been developed based on the FSM Bill as it was introduced in Parliament on Wednesday 20 July.
Our ambition is to be a strong, accountable, responsive, and accessible policymaker. To deliver on this, our approach will remain similar in some areas, and change in others. We will continue to be driven by the pursuit of strong prudential standards, which are a cornerstone of UK financial stability and the international reputation of the UK as a safe and attractive place to do financial services business. However, the move to a more British style of regulation, with most of the technical rules made by independent regulators, will enable us to be more agile and deliver policies which are better suited to the UK’s financial sector.
We welcome views on the ideas set out in this DP from all interested parties. The period for comment runs until Thursday 8 December. After analysing responses, we will publish a consultation paper, followed by a final publication on our policy approach. This final publication will be the policy equivalent of the PRA’s approach to supervision publications.
Please send your comments to DP4_22@bankofengland.co.uk by Thursday 8 December.