Featured Product

    PRA Publishes Discussion Paper on Its Future Approach to Policy

    September 08, 2022

    The Prudential Regulation Authority (PRA) proposed its approach to policy-making as it takes on wider rulemaking responsibilities under the Financial Services and Markets Bill. PRA is requesting comments on the discussion paper until December 08, 2022.

    The Financial Services and Markets Bill will implement the outcomes of the Future Regulatory Framework Review, which was established by the UK government to consider how the financial services regulatory framework in UK should adapt for the future and in particular to reflect the UK’s position outside of the European Union. The proposals in the discussion paper have been developed based on the Financial Services and Markets Bill as it was introduced in Parliament on July 20, 2022. The discussion paper focusses on how PRA proposes to make policy and communicate with its stakeholders, along with its aspirations for the PRA Rulebook. It is not about the substance of specific policies. In particular, the discussion paper:

    • describes the framework of objectives and regulatory principles within which PRA currently operates, and how it will change after the Financial Services and Markets Bill 2022 receives Royal Assent.
    • describes the approach that PRA takes to pursuing its objectives, including early thinking on how it will approach the new secondary objective introduced in the Financial Services and Markets Bill. It also describes the PRA’s approach to considering regulatory principles.
    • describes why and how PRA engages internationally to pursue its objectives, including through the development and implementation of international standards. It discusses how the integration of the global financial system benefits the UK financial system while also creating risks, and sets out how PRA responds to these risks. It also describes how PRA takes an outcomes based approach to “equivalence” advice.
    • describes PRA’s approach to creating and maintaining prudential policy framework. Much of this will remain consistent with the current approach, though the discussion paper also outlines areas where this approach will change – for instance, in relation to stakeholder engagement.
    • outlines the PRA’s ambition to deliver a first-rate Rulebook for the UK, by moving towards a more accessible, usable, efficient, and clearer set of policies. It summarizes four key reforms which are consistent with this outcome. The full implementation of the reform aspirations depends upon when the repeal of retained EU law takes effect, and when rules are made to replace it.

    After analyzing responses to the discussion paper, PRA will publish a consultation paper, followed by a final publication on its policy approach. This final publication will be the policy equivalent of the PRA approach to supervision publications.


    Related Links


    Keywords: Europe, UK, Banking, Insurance, Regulation and Supervision, Financial Services and Markets Bill, Future Regulatory Framework, Proportionality, Regulatory Framework, Regtech, Basel, IFPR, PRA

    Featured Experts
    Related Articles

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699