Top news and publications
- Prudential Regulation Authority Business Plan 2023/24
- CP9/23 – The Bank of England’s approach to enforcement: proposed changes and clarifications
- PS6/23 – Model risk management principles for banks
News and speeches
Joint statement from FCA, PRA, and Bank of England on the government’s proposed amendments to the CCP run-off regime
26 May 2023
The FCA and the PRA are responsible for the supervision of regulated banks to which certain central counterparties (CCPs) provide services. The Bank of England is responsible for the supervision of CCPs in the UK.
The FCA, the PRA and the Bank of England (the regulators) welcome HM Treasury’s statement and the government’s proposed amendments to the Financial Services and Markets Bill relating to the CCP run-off regime.
The regulators recognise and fully support the intention to facilitate the continuity of these clearing services to UK firms consistent with the original amendment tabled for these purposes in January 2023. The regulators continue to work together towards this aim, having regard to their respective duties. In the event of a gap between 1 July and Royal Assent, the regulators will take a proportionate and risk-based approach when giving consideration to the use of their supervisory powers in relation to firms that may be impacted pending Royal Assent.
Conference on the role of financial regulation in international competitiveness and economic growth
The PRA is hosting a major international conference on Tuesday 19 September to develop a deeper understanding of the core linkages and relationships between financial regulation and international competitiveness and growth.
Conference on the role of financial regulation in international competitiveness and economic growth
Supervision and Data − to boldly regulate as no one has regulated before − speech by Rebecca Jackson
16 May 2023
Rebecca Jackson discusses a step change in how the PRA uses supervisory and firm data. This is the data we collect and how we collect it, informed by our statutory objectives, post-Brexit freedoms and technological and market developments.
Supervision and Data − to boldly regulate as no one has regulated before − speech by Rebecca Jackson
The challenges and opportunities ahead for the mutual sector − speech by David Bailey
4 May 2023
David Bailey outlines why credit risk is a key priority in the PRA’s supervision of UK deposit takers in 2023; and what steps it expects regulated firms to be taking in proactively managing credit risk within their portfolios.
His remarks also cover two important areas of policy development: Basel 3.1 and the PRA’s Strong and Simple prudential framework for domestically focused non-systemic firms.
The challenges and opportunities ahead for the mutual sector − speech by David Bailey
Prudential Regulation Authority Business Plan 2023/24
2 May 2023
The 2023/24 Business Plan sets out the workplan for each of our strategic priorities to support the delivery of the PRA’s strategy, together with an overview of the PRA’s budget for 2023/24.
Cross cutting publications and updates
PS4/23 – Moving Senior Managers Regime forms from the PRA Rulebook
9 May 2023
This PS provides feedback to responses to CP2/23 – Moving Senior Managers Regime forms from the PRA Rulebook. It also contains the PRA’s final policy, as follows:
- amendments to the Insurance - Senior Managers Regime – Applications and Notifications Part of the PRA Rulebook (Appendix 1);
- amendments to the Non-Solvency II Firms – Senior Managers Regime – Applications and Notifications Part of the PRA Rulebook;
- amendments to the Large Non-Solvency II Firms – Senior Managers Regime – Applications and Notifications Part of the PRA Rulebook (Appendix 1); and
- amendments to the Senior Managers Regime – Applications and Notifications Part of the PRA Rulebook (Appendix 1);
This PS is relevant to all PRA-authorised firms, including credit unions. Forms submitted before the final policy takes effect would be unaffected.
PS4/23 - Moving Senior Managers Regime forms from the PRA Rulebook
CP9/23 – The Bank of England’s approach to enforcement: proposed changes and clarifications
4 May 2023
This CP proposes changes to the Bank of England and the PRA’s enforcement policies and procedures, the PRA’s policies and procedures for making supervisory and non-enforcement statutory notice decisions, and to the procedures of the Enforcement Decision Making Committee (EDMC).
The CP sets out the Bank’s and the PRA’s proposed amendments to:
- the PRA’s approach to enforcement: statutory statements of policy and procedure (the PRA Enforcement Approach Document);
- the statement of policy for financial penalties imposed by the Bank under the Financial Services and Markets Act 2000 or under Part 5 of the Banking Act 2009 (the Financial Market Infrastructure (FMI) Penalty Policy);
- the Bank’s statutory statements of procedure in respect of the Bank’s supervision of financial market infrastructures (the FMI Procedures); and
- the EDMC Procedures.
The Bank and the PRA propose creating a consolidated set of statements of policy (SoPs) entitled ‘The Bank of England’s approach to enforcement: statements of policy and procedure’ (the Bank Enforcement Approach).
The PRA also proposes creating a new separate SoP entitled ‘The PRA’s allocation of decision-making and approach to supervisory decisions’ (the PRA Supervisory Decision-Making Policy).
The proposed amendments seek to:
- clarify the scope of the Bank’s enforcement powers by creating a document that draws together the Bank’s existing enforcement policies and procedures into one consolidated document – the Bank Enforcement Approach;
- move those sections of the current PRA Enforcement Approach Document which relate to the use of statutory tools other than enforcement powers into the proposed PRA Supervisory Decision-Making Policy;
- make specific and consequential amendments to policies and procedures relating to the PRA Enforcement Approach Document to further incentivise cooperation by subjects under investigation;
- clarify the approach and procedures the Bank would adopt in FMI enforcement investigations;
- set out in the new PRA Supervisory Decision-Making Policy revised policies which ensure operational efficiency and better advance the PRA’s statutory objectives;
- update the EDMC remit to include various enforcement powers available to the PRA and/or the Bank under the Financial Services and Markets Act 2000 (FSMA); and
- clarify the EDMC Procedures to reflect how the procedures have operated in practice and clarify the roles and responsibilities of the EDMC, in light of practical experience of the EDMC in dealing with cases.
This CP is relevant to PRA-authorised banks, building societies, PRA-designated investment firms, FMIs, qualifying parent undertakings, insurers, actuaries, auditors, and senior employees of those entities (including, but not limited to, authorised senior management function holders and certified employees under the Senior Managers and Certification Regime (SM&CR)). It is also relevant to credit unions and of interest to professional advisers who represent firms and individuals potentially subject to enforcement action taken by the Bank and/or the PRA.
The Bank will be holding a series of roundtable discussions on the Bank’s and PRA’s proposals, providing an additional opportunity for external stakeholders to engage with the proposals and provide feedback on the proposed changes. These roundtable discussions will be held on Tuesday 27 June and Tuesday 4 July. There will be options to attend remotely or in person. If you are interested in attending, please complete the form by Friday 9 June 2023.
CP9/23 – The Bank of England’s approach to enforcement: proposed changes and clarifications
Banking publications and updates
Version 3.7.0 PWD Bank of England Banking XBRL taxonomy
31 May 2023
This Public Working Draft (PWD) of the Bank of England Banking Taxonomy sets out the technical implementation of the proposals outlined in CP16/22 and CP6/23. We have provided the Data Point Model (DPM) annotated templates and data dictionary to request industry feedback on the proposed data point modelling and business validation rules.We invite feedback from firms and software vendors on the PWD technical artefacts to uktaxonomypwdfeedback@bankofengland.co.uk by Friday 14 July 2023. This PWD should not be used for reporting.Banks, building societies and investment firms
PS6/23 – Model risk management principles for banks
17 May 2023
This PS provides feedback to the responses to CP6/22 – Model risk management principles for banks. It also contains the PRA’s final policy, as follows:
- supervisory statement (SS) 1/23 – Model risk management principles for banks (see Appendix 1).
The feedback to the responses to CP6/22 in this PS is relevant to all regulated UK-incorporated banks, building societies, and PRA-designated investment firms (hereinafter ‘firms’). For the reasons explained in the Change in scope section below, the final policy in Appendix 1 (SS1/23) only applies to firms with internal model (IM) approval to calculate regulatory capital requirements.
PS6/23 – Model risk management principles for banks
PS5/23 – Risks from contingent leverage
11 May 2023
This PS provides feedback to responses to CP12/22 – Risks from contingent leverage. It also contains the PRA’s final policy, as follows:
- updated supervisory statement (SS) 31/15 – ‘The Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP)’ (Appendix 1);
- amendments to the Reporting (CRR) Part of the PRA Rulebook (Appendix 2);
- introduction of reporting templates LV49-52 (Appendix 3);
- updated ‘Instructions for reporting on leverage’ (Appendix 4); and
- updated SS45/15 – ‘The UK leverage ratio framework’ (Appendix 5), to add LV49-52 to the list of leverage reporting templates.
This PS is relevant to banks, building societies, and PRA-designated investment firms, and their qualifying parent undertakings (referred to as ‘firms’) that perform the Internal Capital Adequacy Assessment Process (ICAAP) as far as the updates to SS31/15 are concerned, and to firms subject to a leverage ratio minimum requirement (LREQ firms) as regards to the reporting rules, template, instructions, and SS45/15.
Insurance publications and updates
New Insurer Start-up Unit
This web page was updated to include information on the Wholesale Insurance Accelerated Pathway. This is developed jointly between the PRA and FCA, aiming to provide an accelerated route to authorisation for a sub-set of London market wholesale applicants.
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 piece 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: