The way we prudentially supervise firms is based on policies that ensure judgements about risks to our objectives are made within a clear and coherent framework.
How we make prudential policy
We aim to establish and maintain published policy material that is consistent with our objectives, clear in intent, straightforward in presentation and as concise as possible. Taken as a whole, the set of published policy material is intended to set out clearly and concisely what outcomes we expect, so that firms can meet these expectations through their actions.
Our approach to policy document sets out how we carry out our role in practice.
Where we issue rules, we aim to do so in a manner that is clear about the intended outcome, straightforward to understand and as concise as possible. We set out these rules in the PRA Rulebook, which contains direct requirements for firms. Our policy framework also includes non-rule material, which is contained in supervisory statements.
We expect firms to engage directly with policy materials, including rules in the PRA Rulebook, supervisory statements and EU materials, and determine - bearing in mind the overarching principle of safety and soundness - whether they are meeting the expectations set out in them.