First published on 17 July 2025
This supervisory statement sets out the Prudential Regulation Authority’s expectations in relation to the approach firms should take when grouping two or more clients into a ‘group of connected clients’. This statement should be read in conjunction with the requirements in the Large Exposures (CRR) Part of the PRA Rulebook and the high-level expectations outlined in the PRA’s approach to banking supervision.
The areas covered by this supervisory statement include:
- Groups of connected clients based on control;
- An alternative approach for exposures to central governments;
- Establishing interconnectedness based on economic dependency;
- The relation between interconnectedness through control and interconnectedness through economic dependency;
- Control and management procedures for identifying connected clients; and
- Illustrative scenarios.
Supervisory statement 3/25