Top news and publications
- CP17/24 – Operational Resilience: Operational incident and outsourcing and third-party reporting
- CP19/24 – Closing liquidity reporting gaps and streamlining Standard Formula reporting
- PS20/24 – Solvent exit planning for insurers
- Statement of policy – The Prudential Regulation Authority’s approach to cost benefit analysis
- Restatement of Solvency II assimilated law: correction to standard formula mass lapse life underwriting risk rule in PS15/24
Cross cutting publications and updates
CP17/24 – Operational resilience: Operational incident and outsourcing and third-party reporting
13 December 2024
This consultation paper (CP) sets out the PRA’s proposals to set requirements in rules and expectations for firms to report operational incidents and their material third-party arrangements.
The proposals set out clear and robust requirements and expectations for regulatory reporting which aim to support the operational resilience of the UK financial sector and enhance the PRA’s understanding of sector threats and vulnerabilities.
This consultation closes on Friday 14 March 2025.The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP17_24@bankofengland.co.uk.
CP17/24 – Operational resilience: Operational incident and outsourcing and third-party reporting
The Prudential Regulation Authority’s approach to cost benefit analysis
12 December 2024
CBA is an integral part of good policymaking. Supported by the CBA Panel, CBA enhances the transparency of our policymaking and our accountability and helps us make better policies.
The PRA’s statement of policy (SoP) on CBA, published on 12 December 2024, sets out our approach. The PRA plans a review of this SoP in Q4 2025, which will take into account feedback from the CBA Panel and other stakeholders.
Feedback should be sent to PRA-costbenefitanalysis@bankofengland.co.uk by 30 September 2025.
The Prudential Regulation Authority’s approach to cost benefit analysis
Banking publications and updates
Data collection on firms’ exposures to tokenised assets, stablecoins and other cryptoassets
12 December 2024
The PRA has published a data request that will help inform its policy making. Firms have until 24 March 2025 to respond.
Data collection on firms’ exposures to tokenised assets, stablecoins and other cryptoassets
Bank of England discussion paper (DP) – Transitioning to a repo-lead operating framework and PRA statement on Indexed Long-Term Repo (ILTR) facility
09 December 2024
The Bank of England (the Bank) has published a DP to obtain feedback on the Bank’s transition to a repo-led operating framework for supplying reserves, and in particular on the changes it is planning to make to the Indexed Long-Term Repo (ILTR) facility. Alongside the publication of the DP, the PRA has published a statement on ILTR usage to clarify that the ILTR should be freely used to access reserves and that the PRA will judge usage of it to be routine sterling liquidity management.
The DP and PRA statement are particularly relevant to current and prospective Sterling Monetary Framework (SMF) participants.
The DP is open for responses until 31 January 2025.
The Bank is asking firms to consider taking the following actions:
- Prepare for increased repo usage: Be ready to use both short-term and long-term repo operations as the Bank of England transitions to a demand-driven framework. The Bank welcomes increased usage of the STR and the ILTR.
- Operational readiness: Ensure they are operationally ready to use the Bank’s facilities and at scale as part of routine sterling liquidity management, including the STR and ILTR.
- Pre-position collateral: Ensure sufficient collateral is pre-positioned with the Bank to access liquidity facilities in both normal and stress conditions.
- Engage with the Bank: Engage with the Discussion Paper by 31 January 2025 and provide feedback on the calibration of the ILTR to ensure it meets the needs of the market.
Transitioning to a repo-led operating framework
PRA statement on Indexed Long-Term Repo (ILTR) facility
Annual Assessment of the Credit Union Sector
02 December 2024
Letter from Helen Ainsworth to directors of credit unions setting out key findings from the PRA annual assessment for this peer group and the actions the PRA expects directors to take.
Insurance publications and updates
Restatement of Solvency II assimilated law: correction to standard formula mass lapse life underwriting rule in PS15/24
20 December 2024
On 15 November 2024, the PRA published policy statement (PS) 15/24 – Review of Solvency II: Restatement of assimilated law. The PRA has since identified an error in rule 3B6.6(1) in the Solvency Capital Requirement – Standard Formula (SCR-SF) Part of the PRA Rulebook published in PS15/24. This statement provides an overview of the error and the PRA’s approach to rectifying the mistake.
SS11/24 – Solvent exit planning for insurers
18 December 2024
This supervisory statement (SS) sets out the Prudential Regulation Authority’s (PRA) expectations for UK insurers to prepare, as part of their business-as-usual (BAU) activities, for an orderly ‘solvent exit’; and if needed, to be able to execute a solvent exit.
SS11/24 – Solvent exit planning for insurers
PS20/24 – Solvent exit planning for insurers
18 December 2024
This PRA PS provides feedback to responses to CP2/24 – Solvent exit planning for insurers. It also contains the PRA’s final policy, as follows:
- preparations for Solvent Exit Part of the PRA Rulebook (Appendix 1); and
- supervisory statement (SS) 11/24 – Solvent exit planning for insurers (Appendix 2).
This PS is relevant to UK Solvency II firms, non-Directive firms and the Society of Lloyd’s. The PS will refer to all of these collectively as ‘insurers’ or ‘firms’ unless otherwise specified.
This PS is not relevant to firms in passive run-off and UK branches of overseas insurers.
PS20/24 – Solvent exit planning for insurers
Shoib Khan, Director of Insurance Supervision, hosted the PRA’s annual Small & Medium Sized Insurers’ Conference
11 December 2024
Over 150 CEOs attended the conference across a range of Category 3 and 4 insurers, branches and managing agents. Across the day, we discussed key risks that the sector faces and how the PRA seeks to mitigate risks to safety and soundness in a way that is proportionate and advances its new secondary growth and competitive objective. The event included remarks from Sam Woods, CEO for Prudential Regulation and David Roberts, Chair of Court at the Bank of England.
The PRA’s key messages for small and medium-sized insurers included:
- We want a vibrant and competitive insurance sector and strive to achieve our primary objective of safety and soundness whilst being proportionate and enhancing our secondary objectives.
- We encourage firms to engage with us early if they need to discuss supervisory issues with us.
- We will be tailored and proportionate in how we set future policy. Our supervisory approach for insurance branches being an example on how we apply tailored proportionality for a section of firms. More generally, we are also reducing reporting requirements through Solvency UK and are taking a more principles-based approach to model approvals.
PRA Small & Medium Sized Insurers’ Conference – presentation slides
CP19/24 – Closing liquidity reporting gaps and streamlining Standard Formula reporting
11 December 2024
This CP sets out the PRA’s proposals to close liquidity reporting gaps for large insurance firms with significant exposure to derivatives or securities involved in lending or repurchase agreements.. This CP also sets out the PRA’s proposals to remove the expectation for life insurers with internal model (IM) permissions to annually submit the SF.01 template containing Solvency Capital Requirement (SCR) information calculated using the Standard Formula (SF). The proposals complement recent Solvency II reforms, which streamline reporting obligations by ensuring they are tailored to the PRA’s supervisory needs.
This consultation closes on Monday 31 March 2025.The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP19_24@bankofengland.co.uk.
CP19/24 – Closing liquidity reporting gaps and streamlining Standard Formula reporting
Deep, liquid, and transparent (DLT) assessment for January 2025 implementation
04 December 2024
The DLT assessments were carried out in accordance with the SoP – The PRA’s approach to the publication of Solvency II technical information.
Deep, liquid, and transparent (DLT) assessment for January 2025 implementation
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