Top news and publications
- Prudential Regulation Authority Business Plan 2021/22
- Bank PS ‘Updates to the Bank of England’s approach to assessing resolvability’
- PS10/21 ‘Resolution assessments: Amendments to reporting and disclosure dates’
- PS9/21 ‘Operational continuity in resolution: Updates to the policy’
News and speeches
Responsible openness in the insurance sector – speech by Anna Sweeney
25 May 2021
Anna Sweeney talks about how we will regulate insurance services following our exit from the EU. She says the UK will continue to be open to international insurance providers are long as they meet our standards.
She also sets out ways to make it easier for UK insurers to expand their businesses and encourage new insurers to set up in the UK to boost competition. Then she talks about the UK’s role in setting international standards on issues such as climate change.
Cyber Risk: 2015 to 2027 and the Penrose steps – speech by Lyndon Nelson
25 May 2021
Cyber risk is ever-changing and we know we need to remain vigilant. Lyndon Nelson talks about the steps we take to counter it. These include:
- simulation exercises;
- penetration testing; and
- international collaboration.
Climate change – plotting our course to net zero – speech by Sarah Breeden
18 May 2021
Sarah Breeden talks about how financial services firms in the UK can act as stewards in the move to a ‘net zero’ economy. And she shares her experiences of designing climate scenarios.
Operational resilience – outcomes in practice – speech by Lyndon Nelson
5 May 2021
Lyndon Nelson talks about how supervision of the financial sector in the UK has changed over the last 25 years.
Then he turns to recent policy on operational resilience. He says the PRA has addressed some of the issues that firms raised in PRA consultation, including the relationship between PRA policy and Financial Conduct Authority policy, and the link to Basel; and looks at the merits of outcome-based regulation of operational resilience.
Mutual interests – speech by Sam Woods
5 May 2021
Sam Woods sets out how the PRA plans to regulate building societies in the future.
Sam ends by saying that the PRA is moving into a new phase of making regulatory rules now the UK has left the EU. It will mean even more engagement with firms on the key issues.
Cross cutting publications and updates
Bank PS ‘Updates to the Bank of England’s approach to assessing resolvability’
28 May 2021
In October 2020, the Bank of England (the Bank) and the PRA consulted in parallel on a package of proposals relating to operational continuity in resolution (OCIR) policy and the resolution measures, announced in May 2020, to alleviate operational burdens on firms in response to Covid-19.
The Bank consultation proposed amendments to ‘Statement of Policy: The Bank of England’s Approach to Assessing Resolvability’ (‘RAF SoP’), published in 2019. The RAF SoP sets out how the Bank as resolution authority intends to assess individual firms’ resolvability, and the resolvability outcomes it deems necessary to support resolution. The proposals covered changes to the OCIR section of the RAF SoP, and sections of the RAF SoP where firms’ submissions and disclosures under the Resolution Assessment Part of the PRA Rulebook in 2020/21 were mentioned.
Prudential Regulation Authority Business Plan 2021/22
24 May 2021
The PRA has published its 2021/22 Business Plan, which sets out the workplan for each of the PRA’s strategic goals in order to support the delivery of its strategy, together with an overview of its budget for the period 1 March 2021 – 28 February 2022. It also details some of the PRA’s highest-level actions to mitigate the impact of Covid-19 on the firms it regulates, and on the UK economy.
Further information
Banking publications and updates
PS10/21 ‘Resolution assessments: Amendments to reporting and disclosure dates’
28 May 2021
This PRA Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 19/20 ‘Resolution assessments: Amendments to reporting and disclosure dates’. It also contains the PRA’s final policy, as follows:
- amendments to Rules 3.1(1) and 4.1(1) in the Resolution Assessment Part of the PRA Rulebook (Appendix 1); and
- an updated Supervisory Statement (SS) 4/19 ‘Resolution assessment and public disclosure by firms’ (Appendix 2).
This PS is relevant to UK banks and building societies with £50 billion or more in retail deposits on an individual or consolidated basis, as at the date of their most recent annual accounts.
PS9/21 ‘Operational continuity in resolution: Updates to the policy’
28 May 2021
This PS provides feedback to responses to CP20/20 ‘Operational continuity in resolution: Updates to the policy’. It also contains the PRA’s final policy, as follows:
- amendments to the Operational Continuity Part of the PRA Rulebook (the rules) (Appendix 1); and
- a new SS4/21 ‘Ensuring operational continuity in resolution’, which will supersede SS9/16 (Appendix 2).
This PS is relevant to PRA-authorised UK banks, building societies, and PRA-designated UK investment firms currently in scope of, or likely to come into scope of, the rules.
PRA statement on updating requirements on the identification of ‘material risk takers’
25 May 2021
This statement provides an update on the PRA’s approach to updating the applicable requirements on the identification of ‘material risk takers’ (MRTs), and its position concerning applications for exclusion of MRTs in the current performance year. It should be read in conjunction with Chapter 3 of the Remuneration Part of the PRA Rulebook, and Supervisory Statement 2/17 ‘Remuneration’ (Chapter 3).
Results of the firm feedback survey 2020
21 May 2021
The annual firm feedback survey gives PRA-authorised firms the opportunity to comment on their experience of being supervised by the PRA.
The smaller firms being surveyed in 2021 can expect to receive a notification on Wednesday 16 June 2021. For more information on the firm feedback survey, please see the Supervisory page.
PRA statement on supervisory benchmarking exercise relating to capital internal models – May 2021
18 May 2021
This statement addresses the 2022 and 2023 supervisory benchmarking exercise for capital internal models (benchmarking exercise). It is relevant to those credit institutions that have been in scope of the associated reporting requirements.
Your input and views on open PRA consultations and other requests closing in June 2021
Closing date: 2 June 2021
Also in the month
12 May 2021
11 May 2021
More information
Bank Underground - a blog for Bank of England staff to share views that challenge – or support – prevailing policy orthodoxies. The views expressed here are those of the authors, and are not necessarily those of the Bank of England or its policy committees.
Bank Overground - the purpose of Bank Overground is to share our internal analysis. Each bite-sized post summarises a piece of analysis that supported a policy or operational decision.
KnowledgeBank - from interest rates and inflation through to bank failures and financial crises, KnowledgeBank uses everyday examples and engaging visuals to bring economics to life.
European and international developments - readers are also referred to the following websites:
Stay in touch
Subscribe to our email notifications for all the latest news and publications.
Send your comments on the PRA Regulatory Digest to PRA Communications.