PRA Regulatory Digest - January 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 01 February 2022

Top news and publications

  • PS1/22 – Insurance business transfers
  • PRA CP1/22 | FCA CP22/1 – Financial Services Compensation Scheme – Management Expenses Levy Limit 2022/23

Cross cutting publications and updates

PRA CP1/22 | FCA CP22/1 – Financial Services Compensation Scheme – Management Expenses Levy Limit 2022/23

12 January 2022

In this Consultation Paper (CP), the PRA and the Financial Conduct Authority (FCA) set out proposals for the Management Expenses Levy Limit (MELL) for the Financial Services Compensation Scheme (FSCS) for 2022/23. This CP is supported by the FSCS’s publication of its Budget Update for 2022/23.

This CP is relevant to all PRA and FCA authorised firms, but contains no material of direct relevance to retail financial services consumers or consumer groups upon which they might need to act.

Responses to the FCA’s discussion paper are due by Friday 4 March 2022 and should be sent to the FCA using the online form or via email.

Further information

Banking publications and updates

Letter from David Bailey and Melanie Beaman ‘UK Deposit Takers Supervision: 2022 priorities’

12 January 2022

The PRA wrote a letter to Chief Executive Officers of PRA-regulated UK deposit takers to update on the 2022 priorities.

Letter from Nathanael Benjamin and Rebecca Jackson ‘International banks active in the UK: 2022 priorities’

12 January 2022

The PRA wrote a letter to Chief Executive Officers of PRA-regulated international banks active in the UK to update on the 2022 priorities.

Insurance publications and updates

Insurance Stress Test 2022 – Request for technical input

20 January 2022

The PRA will be conducting an insurance stress test for the largest regulated life and general insurers from May 2022.

The PRA is seeking feedback on any aspects of the stress test from firms and other industry participants by Thursday 14 March 2022. Please send any comments to IST.2022@bankofengland.co.uk. If you are a firm, please include your firm’s name and FRN in the subject of the email.

For more information please see the Insurance Stress Test 2022 – Request for technical input web page.

PS1/22 – Insurance business transfers

12 January 2022

This PRA Policy Statement (PS) provides feedback to responses to CP16/21 ‘Insurance Business Transfers’. It also contains the PRA’s updated Statement of Policy ‘The PRA’s approach to insurance business transfers’.

This PS is relevant to PRA-authorised insurers, including the Society of Lloyd’s and its managing agents. It is also relevant to mutuals and friendly societies.

Letter from Anna Sweeney and Charlotte Gerken ‘Insurance Supervision: 2022 priorities’

12 January 2022

The PRA wrote a letter to Chief Executive Officers of PRA-regulated insurance firms to update on the 2022 priorities.

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

Closing date: 14 February 2022

Closing date: 28 February 2022

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:

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