By Andrew Bailey, Executive Director of the Bank of England and Managing Director of the Financial Services Authority’s Prudential Business Unit, and Sarah Breeden and Gregory Stevens of the Bank’s PRA Transition Unit.
The Prudential Regulation Authority (PRA), as part of the Bank of England, will become the United Kingdom’s prudential regulator for banks, building societies and credit unions (collectively deposit-takers), insurers and major investment firms in 2013. This is part of a wider reform of the UK regulatory framework, which will also see the creation of a Financial Policy Committee within the Bank, and a new conduct regulator, the Financial Conduct Authority. This article provides a brief description of the PRA’s role and its intended supervisory approach. It summarises some of the key themes of the two more detailed documents about the PRA’s intended approach that were published jointly by the Bank and the Financial Services Authority in October 2012.
The Prudential Regulation Authority