PRA Regulatory Digest - April 2022

The PRA Regulatory Digest is for people working in the UK financial services industry and highlights key regulatory news and publications delivered for the month.
Published on 03 May 2022

Top news and publications

  • Prudential Regulation Authority Business Plan (PRA) 2022/23
  • CP4/22 – Regulated fees and levies: Rates proposals 2022/23
  • Coinciding with HM Treasury’s consultation on the Solvency II Review, the PRA published:
    • The PRA’s statement on ‘Review of Solvency II’ consultation published by HM Treasury
    • DP2/22 ‘Potential reforms to Risk Margin and Matching Adjustment within Solvency II’

News and speeches

Bufferati – speech by Sam Woods

26 April 2022

Sam Woods looks at the rules that are in place to make sure banks have enough capital put aside to withstand economic shocks. He sets out a radical, alternative approach that he argues would be much simpler.

Bufferati – speech by Sam Woods

The future of international insurance in the UK – speech by Alan Sheppard

21 April 2022

Alan Sheppard discusses how the PRA can foster the role of the UK as an international centre for insurance and reinsurance business.

The future of international insurance in the UK – speech by Alan Sheppard

Cross cutting publications and updates

Prudential Regulation Authority Business Plan (PRA) 2022/23

20 April 2022

The PRA’s Business Plan sets out the PRA’s strategy, workplan, and budget for 2022/23.

Prudential Regulation Authority Business Plan 2022/23

CP4/22 – Regulated fees and levies: Rates proposals 2022/23

20 April 2022

Alongside the PRA Business Plan, the PRA published Consultation Paper (CP) 4/22, which sets out the proposals for the PRA’s fees for 2022/23.

This CP is relevant to all firms that currently pay PRA fees or are expecting to do so within the 2022/23 fee year.

This consultation closes on Friday 20 May 2022.

CP4/22 – Regulated fees and levies: Rates proposals 2022/23

PRA Statement on capital arbitrage transactions

13 April 2022

This statement provides an update on the PRA’s approach to capital arbitrage transactions.

PRA Statement on capital arbitrage transactions

Banking publications and updates

CP5/22 – The Strong and Simple Framework: a definition of a Simpler-regime Firm

29 April 2022

In this CP, the PRA sets out its proposals for introducing a definition of a ‘Simpler-regime Firm’. The PRA’s implementation of this proposed definition would be the first step in designing a strong and simple framework.

The proposals in this CP would introduce a new definition, Simpler-regime Firm, in the PRA Rulebook.

The CP is relevant to PRA-authorised banks and building societies, and prospective entities interested in, and currently applying for, authorisation as a deposit-taker.

This consultation closes on Friday 22 July 2022.

CP5/22 – The Strong and Simple Framework: a definition of a Simpler-regime Firm

Inventory of senior manager responsibilities

7 April 2022

The PRA have updated the inventory of senior manager responsibilities to include references made to senior manager responsibilities in PRA publications since its publication (in December 2021). For more information please visit the Strengthening accountability webpage.

Insurance publications and updates

The PRA’s statement on ‘Review of Solvency II’ consultation published by HM Treasury

28 April 2022

This statement provides an update from the PRA, coinciding with the consultation published by HM Treasury (HMT) on the Solvency II Review. Alongside the statement, the PRA published DP2/22 – Potential Reforms to Risk Margin and Matching Adjustment within Solvency II, and the Solvency II Review: Summary of Quantitative Impact Study (QIS). See directly below for more information on both publications.

The PRA’s statement on ‘Review of Solvency II’ a consultation published by HM Treasury

DP2/22 – Potential reforms to Risk Margin and Matching Adjustment within Solvency II

28 April 2022

This Discussion Paper (DP) sets out the PRA’s current assessment of overall reform outcomes arising from key aspects of HMT’s review of Solvency II – particularly reforms to the fundamental spread and risk margin. The content of this DP is primarily of relevance to the annuity sector. It will also be of interest to other insurance and reinsurance undertakings and industry stakeholders.

DP2/22 – Potential reforms to Risk Margin and Matching Adjustment within Solvency II

Solvency II Review: Summary of Quantitative Impact Study (QIS)

28 April 2022

Alongside the statement and DP2/22, the PRA published ‘Solvency II Review: Summary of Quantitative Impact Study (QIS)’, which is available on the ‘Review of Solvency II: Quantitative Impact Study’ page.

Your input and views on open PRA consultations and other requests closing in May 2022

CP2/22 – Definition of capital updates to PRA Rules and supervisory expectations

Closing date: 2 May 2022

CP3/22 ‘Occasional Consultation Paper – March 2022’

Closing date: 10 May 2022

CP4/22 – Regulated fees and levies: Rates proposals 2022/23

Closing date: 20 May 2022

Also in the month

4 April 2022

Monetary and financial stability and the invasion of Ukraine – speech by Jon Cunliffe

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-size post summarises a pieces of analysis that support 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 referred to the following websites:

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This page was last updated 29 April 2022

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