Top news and publications
- Consultation paper 12/23 – Review of Solvency II: Adapting to the UK insurance market
- Policy statement 8/23 – Regulated fees and levies: Rates for 2023/24
- Consultation paper 10/23 – Solvent exit planning for non-systemic banks and building societies
News and speeches
The Bank of England’s approach to enforcement: a decade in the making − speech by Oliver Dearie
21 June 2023
The Head of Enforcement and Litigation, Oliver Dearie, explains the rationale behind the changes proposed in the recent consultation paper on enforcement.
Oliver explains the key changes have been influenced and shaped by the Bank of England’s strong enforcement record and five key principles:
- transparency and clarity;
- willingness to learn lessons from past cases;
- maximising efficiency without compromising rigour or fairness;
- ensuring our policies remain aligned with our statutory objectives; and
- the importance of individual accountability
The Bank of England’s approach to enforcement: a decade in the making − speech by Oliver Dearie
Cross cutting publications and updates
PS8/23 – Regulated fees and levies: Rates proposals 2023/24
29 June 2023
This PS provides feedback to responses to CP7/23 – Regulated fees and levies: Rates proposals 2023/24. It also contains the PRA’s final policy, as follows:
- the fee rates to meet the PRA’s 2023/24 Annual Funding Requirement (AFR) for the financial period Wednesday 1 March 2023 to Thursday 29 February 2024 (fee year); and
- amendments to the Fees Part of the PRA Rulebook (Appendix 1).
This PS is relevant to all firms that currently pay PRA fees or are expecting to do so within the 2023/24 fee year.
PS8/23 – Regulated fees and levies: Rates proposals 2023/24
Results of the firm feedback survey 2022
23 June 2023
Each year, we seek input from firms on the effectiveness and quality of our supervisory framework and approach. One of the ways we do this is through the annual firm feedback survey. This process is overseen by a team independent of frontline supervision. We conducted the survey from August to October 2022.
The annual firm feedback survey gives PRA-authorised firms the opportunity to comment on their experience of being supervised by the PRA.
Results of the firm feedback survey 2022
CP11/23 – PRA statement on the review of rules
30 June 2023
This CP sets out the PRA’s proposed approach to reviewing its rule, as required by the FSM Act. The review of PRA rules and supervisory statements (‘rule review’) is already a familiar part of the PRA’s existing approach to policy making. The PRA reviews existing rules to assess if they are operating effectively and delivering their intended impact. Rule review can lead to major changes or minor adjustments to the PRA Rulebook depending on the circumstances and evidence base. Rules may be reviewed for various reasons, including whether:
- the rules have not adequately addressed the risk for which they were designed or if new information emerges to inform the calibration of the rules compared to the risk they address;
- the rules have given rise to unintended consequences;
- firms are arbitraging or avoiding the rules in unanticipated ways;
- the structure of the economy or financial system has evolved;
- relevant international standards affecting the rule have changed; or
- the nature of the issue addressed by the rules has evolved.
CP11/23 – PRA statement on the review of rules
PS7/23 – Depositor Protection
30 June 2023
Readers should be aware that this PRA policy statement implements the final rules following a consultation paper issued in September 2022 which closed in December 2022. These changes are unconnected to the consideration of the issues identified from the failure of Silicon Valley Bank (SVB). Work is ongoing to consider whether further changes are needed to the depositor protection regime, including in light of lessons learned from SVB.
This PRA PS provides the PRA’s response to the final part of the representation to consultation paper (CP) 9/22 – Depositor Protection. It also contains:
- the PRA’s final rules concerning the relevant amendments to the Depositor Protection Part of the PRA Rulebook (DP);
- the updated PRA supervisory statement (SS) 18/15 – Depositor and dormant account protection (SS18/15);
- the updated PRA statement of policy (SoP) – Deposit Guarantee Scheme (SoP – DGS) (Appendix 3); and
- the updated PRA SoP – Calculating risk-based levies for the Financial Services Compensation Scheme deposits class (SoP – RBL).
PS7/23 – Depositor Protection
Banking publications and updates
CP10/23 – Solvent exit planning for non-systemic banks and building societies
28 June 2023
This CP outlines the PRA’s proposals for non-systemic banks and building societies in the UK to prepare, as part of their business-as-usual (BAU) activities, for an orderly ‘solvent exit’; and if needed, to be able to execute one. The PRA identified in 2021, and confirmed in its business plan for 2022/23, that it would do more in the coming years to increase confidence that firms can exit the market with minimal disruption, in an orderly way, and without having to rely on the backstop of an insolvency or resolution process. This CP is part of that long-standing programme of work.
The proposals in this CP will, if implemented, add a new chapter to the Recovery Plans Part of the PRA Rulebook and introduce a new supervisory statement applicable to firms that are in scope of the proposed new rule.
CP10/23 – Solvent exit planning for non-systemic banks and building societies
Regulatory reporting and disclosure – banking sector
12 June 2023
In the PRA’s Future Approach to Policy (DP4/22), the PRA announced it was launching a Banking Data Review (BDR). The review will look at what data it collects currently and what data the PRA needs now and in future.
The PRA will hold an Industry Consultative Forum on Wednesday 5 July in hybrid format, where we will share the phasing plan for the BDR and what is planned for phase 1. The majority of the session will be allocated to hearing your views on the proposals and the impact these will have on your firm.
We have been coordinating this event through industry trade bodies, but if you have not been contacted through a trade body about this event you can get in touch directly at BDRsecretariat@bankofengland.co.uk to learn more and to register your attendance. Membership is open to heads of regulatory reporting or similar of all PRA-regulated banks and building societies.
Insurance publications and updates
CP12/23 - Review of Solvency II: Adapting to the UK insurance market
29 June 2023
This CP marks a significant milestone towards adapting the Solvency II framework to the UK insurance market. It sets out the PRA’s proposals to deliver significant reforms for Solvency II, which the PRA considers will lead to a more competitive and dynamic insurance sector in the UK, while maintaining high standards of policyholder protection.
This consultation paper should be read in conjunction with the Government’s response to its Solvency II review consultation. That response outlined the areas of the reform package that will be delivered through a combination of changes in PRA rules and legislation to achieve the objectives for the Solvency II review: a competitive insurance sector; investment to support growth; and policyholder protection. The PRA has worked closely with HM Treasury (HMT) on the review.
Using the new powers in the Financial Services and Markets Bill Act 2023 (FSM Act), the Government has confirmed that it plans to legislate directly to implement certain parts of the Solvency II reform package. For all other reforms, it also intends to legislate to enable the PRA to make the necessary changes to rules and other policy material, including by repealing the relevant areas of retained EU law. This approach is set out in HMT’s draft Statutory Instruments (SIs) on reforms to Solvency II. The material in this CP has been prepared on the assumption that the Government legislates in line with the approach that it has indicated, including by giving the PRA the necessary powers to implement these proposals.
This CP sets out the PRA’s proposals to deliver reforms in all of the areas of the Solvency II review where the Government has not chosen to legislate directly, and which are therefore for the PRA to take forward. They focus on measures to simplify some Solvency II requirements, allow improved flexibility for others, and encourage entry into the UK insurance market. The PRA considers that the proposals will allow a meaningful reduction to the existing administrative and reporting requirements for the UK insurance sector to decrease costs and complexity, while maintaining strong prudential standards. The PRA judges that the reforms in this CP will advance its primary objectives of safety and soundness and policyholder protection while also advancing its secondary competition objective and its new secondary competitiveness and growth objective arising out of the FSM Act. The main areas of reform and the key benefits that the PRA considers would arise from them are set out below.
CP12/23 - Review of Solvency II: Adapting to the UK insurance market
Follow up to the letter: Insights from PRA thematic review of general insurance reserving and capital modelling
23 June 2023
Letter to Chief Actuaries of general insurance firms and Lloyd’s Managing Agents regulated by the PRA setting out observations of a review on how firms responded to the October 2022 letter. Firms should take into account the PRA’s observations as they prepare for their next and subsequent reserving and capital assessment exercises.
Letter from Charlotte Gerken ‘Feedback on the PRA’s preliminary thematic review work on funded reinsurance arrangements’
15 June 2023
Letter to Chief Risk Officers of life insurance firms regulated by the PRA on the findings from the recent preliminary thematic review work on funded reinsurance arrangements.
More information
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