Top news and publications
- Prudential Regulation Authority Annual report 2023/24
- Competitiveness and growth: Embedding the Prudential Regulation Authority’s (PRA) new secondary objective
- PS11/24 – Regulated fees and levies: Rates proposals 2024/25
- PS12/24 – The Prudential Regulation Authority’s approach to rule permissions and waivers
- PS13/24 – Funded reinsurance
- PS14/24 – Leverage ratio treatment of omnibus account reserves and minor amendments to the leverage ratio framework
News and speeches
The PRA holds IRB wholesale roundtable
22 July 2024
The Prudential Regulation Authority (PRA) held a roundtable meeting on the internal ratings based (IRB) approach for wholesale exposures, for PRA-regulated firms with, or interested in seeking, an IRB permission for wholesale exposures, on Monday 15 July 2024 at UK Finance.
The PRA holds IRB wholesale roundtable
Results of the firm feedback survey 2023
15 July 2024
The annual firm feedback survey gives a sample of PRA-authorised firms the opportunity to comment on their experience of being supervised by the PRA.
Cross cutting publications and updates
PRA Annual report 2023/24
30 July 2024
The Bank of England and the PRA have published their annual reports.
Our key achievements include the introduction of the new UK insurance regime (Solvency UK), which will come into effect over 2024, as well as the significant progress made with the final package of post-crisis capital reforms for banks (Basel 3.1), and a regime that is simpler but robust for smaller banks (Strong and Simple).
The PRA also had a key role engaging in domestic and international efforts to learn lessons from the high-profile failures of Credit Suisse and Silicon Valley Bank, including by supporting plans for targeted additions to the Bank’s resolution toolkit to manage the failure of smaller banks.
The Report also sets out details of how the PRA improved its operational efficiency by enhancing data-related capabilities through phased investments in innovative technologies and processes to support our supervisory activities.
FSMA 2023 marked a milestone in UK financial regulation, granting the PRA wider rule-making responsibilities to design and implement regulation that is better suited to the UK’s financial sector, as well as new powers to oversee critical third-party service providers to the financial system (alongside the Bank and the Financial Conduct Authority). The PRA was also given a new secondary objective to support the international competitiveness and medium- to long-term growth (SCGO) of the UK.
Importantly, our first-ever SCGO report, published alongside the Report, explains how the PRA has implemented the SCGO as well as its existing secondary objective of facilitating competition in PRA-regulated sectors. The SCGO Report also includes the PRA’s response to the Independent Evaluation Office’s (IEO) evaluation of our preparedness for embedding the new objective into our operating framework.
Prudential Regulation Authority Annual Report 2023/24
Competitiveness and growth: Embedding the PRA’s new secondary objective
30 July 2024
The Financial Services and Markets Act 2023 gave the PRA a new secondary objective, which requires the PRA to facilitate subject to aligning with relevant international standards, the international competitiveness of the UK economy (including in particular, the financial services sector through the contribution of PRA-authorised persons) and its growth over the medium to long term (SCGO).
This is the first report that the PRA publishes to document its progress on the SCGO and it covers the SCGO-related initiatives carried out by the PRA from the date in which the SCGO came into force (29 August 2023) up until 30 June 2024. This report also covers the impacts of the PRA’s activities on both the SCGO and the PRA’s other secondary objective to facilitate effective competition (SCO).
Competitiveness and growth: embedding the PRA’s new secondary objective
The Prescribed Persons (Reports on Disclosures of Information) Regulations 2017 – Annual Report 2023/24
30 July 2024
The Bank of England and PRA are both Prescribed Persons as defined by Parliament under The Public Interest Disclosure (Prescribed Persons) Order 2014.
Since April 2017, all ‘Prescribed Persons’ are required to report in writing annually on workers (whistleblowing) disclosures they have received. This report covers the period 1 April 2023 to 31 March 2024.
PRA Practitioner Panel: Annual Report 2023/24
30 July 2024
The PRA Practitioner Panel (the Panel) is established by the PRA under sections 2L and 2M of the Financial Services and Markets Act 2000 (FSMA) to represent the interests of practitioners. The Panel is independent of the PRA. The Panel provides input to the PRA to help it meet its statutory objectives and is consulted on the PRA’s general policies and practices relating to either banking or banking and insurance.
In 2023/24, the Panel continued to effectively represent the interests of practitioners by considering and providing appropriate scrutiny on significant PRA policy and regulatory developments which benefit from the Panel’s input. This has been achieved through regular discussions with the relevant PRA and wider Bank of England (‘the Bank’) policy leads, senior management, and Prudential Regulatory Committee (PRC) members at Panel meetings.
Following provisions of the Financial Services and Markets Act 2023 coming into force, a new Insurance Practitioner Panel was established in October 2023 and the Insurance Sub-Committee (the ISC) of the Panel was dissolved. As a result of this statutory change, the Insurance Practitioner Panel produces a separate annual report. The activities of the ISC for the period March to October 2023 are covered in the annual report of the IPP. Relevant information continues to be shared between both panels.
PRA Practitioner Panel: Annual Report 2023/24
Enforcement Decision Making Committee Report 2023/24
30 July 2024
This Enforcement Decision Making Committee (EDMC) annual report covers the period of 1 March 2023 to 29 February 2024.
This is the fifth report of the Enforcement Decision Making Committee (EDMC) of the Bank of England (the Bank), covering the period of 1 March 2023 to 29 February 2024. Earlier reports are available on the Bank’s website. The EDMC works to strengthen the Bank’s enforcement processes by ensuring a functional separation in contested enforcement cases between investigation teams and executive on the one hand, and decision makers on the other. The essence of the system is that decisions are taken by the EDMC independently.
Enforcement Decision Making Committee Report 2023/24
PS14/24 – Leverage ratio treatment of omnibus account reserves and minor amendments to the leverage ratio framework
29 July 2024
This PRA policy statement (PS) provides feedback to responses the PRA received to consultation paper (CP) 28/23 – Leverage ratio treatment of omnibus account reserves and minor amendments to the leverage ratio framework. It also contains the PRA’s final policy, as follows:
- amendments to the Glossary, Leverage Ratio (CRR), Disclosure (CRR) and Reporting (CRR) Parts of the PRA Rulebook;
- updates to supervisory statement (SS) 45/15;
- amendments to the ‘Instructions for leverage ratio disclosures’ (the ‘disclosure instructions’); and
- amendments to the ‘Instructions for leverage ratio reporting’ (the ‘reporting instructions’).
This PS is relevant to Capital Requirements Regulation (CRR) firms and CRR consolidation entities on an individual, consolidated, and where relevant, sub-consolidated basis. This PS is not relevant to credit unions.
PS12/24 – The Prudential Regulation Authority’s approach to rule permissions and waivers
25 July 2024
This PRA PS provides feedback to responses the PRA received to CP3/24 – The Prudential Regulation Authority’s approach to rule permissions and waivers. It also contains the PRA’s final statement of policy (SoP) – The Prudential Regulation Authority’s approach to rule permissions and waivers.
This PS is relevant to all persons subject to PRA rules.
PS12/24 – The Prudential Regulation Authority’s approach to rule permissions and waivers
Statement of policy – The Prudential Regulation Authority’s approach to rule permissions and waivers
25 July 2024
This SoP sets out the PRA’s approach to the granting of rule permissions under section 138BA of the Financial Services and Markets Act 2000 (FSMA). It is relevant to all persons subject to PRA rules.
The Prudential Regulation Authority’s approach to rule permissions and waivers
PS11/24 – Regulated fees and levies: Rates proposals 2024/25
05 July 2024
This PRA PS provides feedback to responses the PRA received to CP4/24 – Regulated fees and levies: Rates proposals 2024/25. It also contains the PRA’s final policy, as follows:
- the fees rates to meet the PRA’s 2024/25 Annual Funding Requirement (AFR) for the financial period Friday 1 March 2024 to Friday 28 February 2025 (‘fee year’); and
- amendments to the Fees Part of the PRA Rulebook.
This PS is relevant to all firms that currently pay PRA fees or are expecting to do so within the 2024/25 fee year.
CP4/24 – Regulated fees and levies: Rates proposals for 2024/25
Banking publications and updates
CP11/24 – International firms: Updates to SS5/21 and branch reporting
30 July 2024
The PRA’s SS5/21 – International banks: The PRA’s approach to branch and subsidiary supervision sets out its approach to supervising international banks with activities in the UK, in line with its principle of responsible openness towards international business. This CP proposes targeted updates to reflect developments since the publication of SS5/21 and to provide detail or clarification on certain aspects of the PRA’s approach. The proposals in this CP do not alter the overall framework in SS5/21.
This CP sets out the following proposed updates to the PRA’s approach to international banks:
- the introduction of some additional indicative criteria that the PRA would consider when determining whether it would be appropriate for an international bank to operate in the UK as a branch rather than a subsidiary;
- clarifications to the expectations of firms’ booking arrangements and extending their formal application to a subset of UK banks;
- amendments to the PRA branch return designed to improve the collection of whole-firm liquidity data; and
- minor amendments to SS5/21 to clarify some of the PRA’s existing expectations and processes.
This CP is relevant to existing or prospective PRA-authorised banks and designated investment firms that are headquartered outside of the UK or are part of a group based outside of the UK. In addition, (parts of) Chapter 3 of this CP relating to the PRA’s expectations regarding booking models are also relevant to banks and designated investment firms that are headquartered in the UK or are part of a group based in the UK, with investment banking and/or sales or trading activities in both the UK and overseas.
This consultation closes on Wednesday 30 October 2024. The PRA invites feedback on the proposals set out in this consultation. Please address any comments or enquiries to CP11_24@bankofengland.co.uk.
CP11/24 – International firms: Updates to SS5/21 and branch reporting
Insurance publications and updates
Bank of England Insurance taxonomy v2.0.0
30 July 2024
Since the publication of the Bank of England Insurance Taxonomy v2.0.0, the PRA has received feedback from firms and identified issues which will be addressed in the hotfix scheduled for early Q4 2024. Consequently, the hotfix scope has changed from just validations to also include the taxonomy annotated templates and thus will be instance impacting. There will be changes and corrections to the DPM modelling, validations and labels. Entry points, table groups and naming conventions will remain unchanged. The PRA will update the taxonomy known issue log with the detail of these issues. A change log between v2.0.0 and the hotfix will be published along with the hotfix package.
Based on the questions received from industry following the 14 May taxonomy focussed roundtable, the PRA have put together a Q&A document and a template and instructions issue log covering templates and instructions. The PRA will update these documents as required to help firms with the implementation of the new Solvency UK regulatory reporting requirements.
Regulatory reporting - insurance sector
PRA Insurance Practitioner Panel: Annual Report 2023/24
30 July 2024
The Insurance Practitioner Panel (IPP) is a statutory body representing the interests of insurance practitioners established in October 2023 by the PRA in accordance with sections 2L and 2MA of the Financial Services and Markets Act 2000 (FSMA). The members of the IPP act in an individual capacity, not as representatives of their firms or the trade associations that nominate them. Upon the establishment of the IPP, the Insurance Sub-committee (ISC) of the Practitioner Panel was dissolved. In previous years, the ISC reported on its activities as part of the PRA Practitioner Panel Annual Report. To reflect that the IPP was established within the reporting period, and for ease of reference given the similar functions of IPP and ISC, this report covers the activities of both the ISC until its dissolution in October 2023 and the IPP from its establishment in October 2023 to the end of the reporting period.
PRA Insurance Practitioner Panel: Annual Report 2023/24
Dear CEO letter: Supervisory statement (SS)5/24 – Funded reinsurance: Implementation approach
26 July 2024
Letter to Chief Executive Officers of PRA-regulated life insurers explaining how we expect firms to assess their practices on funded reinsurance against the expectations set out following the publication of the supervisory statement (SS5/24).
Dear CEO letter: Supervisory statement (SS) 5/24 – Funded reinsurance: Implementation approach
SS5/24 – Funded reinsurance
26 July 2024
This SS sets out the PRA’s expectations in respect of insurers entering into or holding funded reinsurance arrangements as cedants.
It covers the PRA’s expectations in the following areas:
- the ongoing risk management of funded reinsurance arrangements;
- the modelling of the solvency capital requirement associated with funded reinsurance arrangements; and
- how firms should consider the structuring of funded reinsurance arrangements.
This SS is relevant to UK Solvency II firms and insurance and reinsurance undertakings that have a UK branch (third-country branch undertakings) when they hold, or are intending to enter, funded reinsurance arrangements.
PS13/24 – Funded Reinsurance
26 July 2024
This PRA PS provides feedback to responses the PRA received to CP24/23 – Funded reinsurance. It also contains the PRA’s final policy in the form of the final SS5/24 – Funded reinsurance.
This PS is relevant to UK Solvency II firms and insurance and reinsurance undertakings that have a UK branch (third-country branch undertakings) when they hold, or are intending to enter, funded reinsurance arrangements.
Prudential Regulation Authority (PRA) statement on the design of the dynamic general insurance stress test (DyGIST) 2025
15 July 2024
This statement provides further information on the dynamic general insurance stress test that the PRA intends to run in 2025.
Life Insurance Stress Test (LIST)
10 July 2024
We have published Approach to LIST 2025. Alongside publication of the approach document, we open the request for technical input on proposed scenario specifications, guidelines and instructions, and templates.
Life Insurance Stress Test (LIST) 2025
Bank of England Insurance taxonomy v2.0.0
30 May 2024
Following the Bank of England Insurance Taxonomy v2.0.0 publication on 29 April we have published a minor update to the XBRL filing manual and published a known issue log. This log will be updated as required to describe issues the Bank of England is aware of in the taxonomy, including status updates and temporary solutions (where relevant).
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: