PRA Regulatory Digest - November 2021

The PRA Regulatory Digest is for people working in the UK financial services industry and highlights key regulatory news and publications delivered for the month.
Published on 01 December 2021

Top news and publications

  • The PRA’s role in improving the processes that support insurers’ investment – speech by Charlotte Gerken
  • DP3/21 | The PRA Rulebook website: Planned updates
  • CP21/21 | Operational Resilience and Operational Continuity in Resolution: CRR firms, Solvency II firms, and Financial Holding Companies (for Operational Resilience)
  • PS26/21 | Domestic Liquidity Sub-Groups

News and speeches

The PRA’s role in improving the processes that support insurers’ investment – speech by Charlotte Gerken

25 November 2021

The speech was given at the Insurance Asset Management Conference. Insurers play a key role as investors in the UK economy says Charlotte Gerken.

Charlotte talks about the Prudential Regulation Authority’s role in the review of Solvency II. As part of this review, she says, there is an opportunity to consider reforms that will support insurers to invest.

She sets out some of the areas the PRA is looking at that may improve all stages of the investment process; and she explains what the PRA expects of insurers when it comes to managing investment risk.

Cross cutting publications and updates

DP3/21 | The PRA Rulebook website: Planned updates

29 November 2021

This Discussion Paper (DP) sets out the PRA plans for the next iteration of the PRA Rulebook website, as well as possible future changes on a longer timeframe. The updates will improve the PRA’s flexibility to present in a comprehensive manner the increased volume of policy that the PRA expects from its new rule-making responsibilities.This DP closes on Monday 28 February 2022.

CP21/21 | Operational Resilience and Operational Continuity in Resolution: CRR firms, Solvency II firms, and Financial Holding Companies (for Operational Resilience)

25 November 2021

This Consultation Paper (CP) sets out the PRA proposals to apply the group provisions in the Operational Resilience Part of the PRA Rulebook relevant to Capital Requirements Regulation firms to holding companies, and to make other minor formatting and clarification amendments to the Operational Resilience and Operational Continuity Parts of the PRA Rulebook.

The proposals in this CP are relevant to different types of firms as follows:

  • Operational Resilience: UK banks, building societies, and PRA-designated investment firms, financial holding companies, mixed financial holding companies, UK Solvency II firms, and the Society of Lloyd’s and its managing agents.
  • Operational Continuity in Resolution: UK banks, building societies, and PRA-designated UK investment firms currently in scope of, or likely to come in scope of, the Operational Continuity Part of the PRA Rulebook.

The PRA also proposes consequential amendments to Supervisory Statement (SS) 1/21 ‘Operational resilience: Impact tolerances for important business services’.

PS25/21 | Responses to CP13/21 ‘Occasional Consultation Paper’

8 November 2021

This PRA Policy Statement (PS) provides feedback to responses to CP13/21 ‘Occasional Consultation Paper’. It also contains the final rules, updated SS, and updated templates, instructions, and associated guidance and notes.

This PS is relevant to different firms, in accordance with the CP chapters.

Please see the PS for a full list of all of the policy material that is changing and implementation dates.

Further information

Banking publications and updates

PS26/21 | Domestic Liquidity Sub-Groups

15 November 2021

This PRA PS provides feedback to responses to CP19/21 ‘Domestic Liquidity Sub-Groups’. It also contains the PRA’s final policy, as follows:

  • amendments to the Glossary, Liquidity (CRR), and Internal Liquidity Adequacy Assessment Parts of the PRA Rulebook; and
  • amendments to the Statement of Policy (SoP) ‘Liquidity and Funding Permissions’.

This PS is relevant to PRA-authorised UK banks, PRA-designated UK investment firms, and building societies. It is also relevant to UK financial or mixed financial holding companies that are immediate parent undertakings of firms that may be included in a DoLSub. It is not relevant to credit unions.

Amended remuneration policy statement tables

4 November 2021

We published two amended remuneration policy statement (RPS) tables for level one firms, and for level two and three firms. These can be found on the strengthening accountability page of our website, under ‘Self-assessment templates and tables’.

Your input and views on open PRA consultations and other requests closing in December 2021

Closing date: 6 December 2021

Also in the month

3 November 2021

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-sized post summarises a piece of analysis that supported a policy or operational decision.

KnowledgeBank - from interest rates and inflation through to bank failures and financial crises, KnowledgeBank uses everyday examples and engaging visuals to bring economics to life.

European and international developments - readers are also referred to the following websites:

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