Top news and publications
- CP1/23 - Financial Services Compensation Scheme – Management Expenses Levy Limit 2023/24.
- Supervisory priorities letters for international banks active in the UK, UK deposit takers, and insurance.
- Insurance Stress Test 2022 Feedback.
Cross cutting publications and updates
CP2/23 – Moving Senior Managers Regime forms from the PRA Rulebook
31 January 2023
This CP sets out the PRA’s proposals to remove certain Senior Managers and Certification Regime (SM&CR) forms from the PRA Rulebook and to extend the length of employment history required in the long form A. The proposals in this CP would result in changes to the Senior Managers Regime –Applications and Notifications Parts of the PRA Rulebook (Appendix 1). The PRA’s proposal to remove certain SM&CR forms from the PRA Rulebook would mean that when the PRA needs to make administrative or other non-material changes to these forms it would not be required to follow the statutory consultation process for rule changes. These forms would be available on the Connect system in the same manner as other regulatory transaction forms. The PRA’s proposal to increase the length of employment history requested in long form A would bring the form in-line with MiFID requirements. This would ensure a consistent user experience with all Senior Managers Function (SMF) applicants providing the same minimum length of employment history. This CP is relevant to all PRA-authorised firms, including credit unions. Forms submitted before the proposed changes take effect would be unaffected.
CP2/23 – Moving Senior Managers Regime forms from the PRA Rulebook
Letter from the Bank, PRA, and FCA ‘2022 CBEST thematic findings’
31 January 2023
Cover letter from the supervisory teams of the Bank, PRA, and FCA to senior management functions with responsibility for cyber, highlighting the thematic findings from the latest cycle of CBEST assessments (details included in the Appendix, which is not published).
Letter from the Bank, PRA, and FCA ‘2022 CBEST thematic findings’
CP1/23 - Financial Services Compensation Scheme – Management Expenses Levy Limit 2023/24
12 January 2023
In this CP, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) – set out proposals for the Management Expenses Levy Limit (MELL) for the Financial Services Compensation Scheme (FSCS) for 2023/24. This CP is supported by the FSCS's Proposed Budget Update for 2023/24 published alongside this CP.
The FSCS is a fund of last resort to provide compensation for consumers when financial services firms fail. Its other functions include:
- making recoveries from failed financial institutions;
- promoting consumer awareness of FSCS protection; and
- verifying account information that firms provide to enable faster pay-out to depositors.
Under section 223 (1) of the Financial Services and Markets Act 2000 (FSMA), a limit must be set for the total management expenses that the FSCS can levy on financial services firms. The MELL is the maximum amount that the FSCS may levy in a financial year for its operating costs without further rule-making by the FCA and the PRA after consultation. Setting the right MELL ensures that the scheme has sufficient funding to exercise the functions conferred on it by Part XV of FSMA and by rules made by the FCA and the PRA.
This CP is relevant to all FCA and PRA authorised firms. It is not of direct relevance to retail financial services consumers or consumer groups and they do not need to act on it.
CP1/23 - Financial Services Compensation Scheme – Management Expenses Levy Limit 2023/24
Banking publications and updates
Letter from Nathanaël Benjamin and Rebecca Jackson ‘International banks active in the UK: 2023 priorities’
10 January 2023
Letter to Chief Executive Officers of PRA-regulated international banks active in the UK, setting out the priorities for international banks supervision.
Letter to Chief Executive Officers of PRA-regulated international banks active in the UK
Letter from David Bailey and Charles Woods ‘UK Deposit Takers Supervision: 2023 priorities’
10 January 2023
Letter to Chief Executive Officers of PRA-regulated UK Deposit Takers, setting out the priorities for UK deposit takers supervision.
Letter to Chief Executive Officers of PRA-regulated UK Deposit Takers
Insurance publications and updates
Insurance Stress Test 2022 Feedback
23 January 2023
Letter sent to firms participating in the Insurance Stress Test 2022 launched in May 2022, providing the results.
Insurance Stress Test 2022 feedback
Letter from Charlotte Gerken and Shoib Khan ‘Insurance Supervision: 2023 priorities’
10 January 2023
Letter to Chief Executive Officers of PRA-regulated Insurance firms, setting out the priorities for insurance supervision.
Letter to Chief Executive Officers of PRA-regulated Insurance firms
PRA statement on the recalculation of the Transitional Measure on Technical Provisions (TMTP)
6 January 2023
This statement highlights the PRA's recent invitation to insurance firms to recalculate the Transitional Measure on Technical Provisions.
PRA statement on the recalculation of the Transitional Measure on Technical Provisions (TMTP)
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.
Explainers – from Interest rates and inflation through to bank failures and financial crises, Explainers uses everyday examples and engaging visuals to bring economics to life.
European and International developments – readers are referred to the following websites: