Last week the Prudential Regulation Authority (PRA) released several key documents including its annual Policy Statement amending certain aspects of the PRA Rulebook.
These policy changes are sure to have an impact across all firms that come under the PRA’s regulatory jurisdiction.
The PRA has:
- Amended eight of its Fundamental Rules which replaced its Principles of Business on 19th June 2014;
- Introduced an information gathering instrument in line with provisions set out in section 137 of the Financial Services and Markets Act 2000;
- Introduced an auditors instrument to monitor the appointment and quality of external auditors;
- And introduced a use of skilled persons instrument that sets out guidelines for the reporting of relevant information back to the PRA via a “skilled person”.
After uploading the policy statement into our RegDelta Risk Library, we were able to compare the topic deltas between the document and the CRD IV document. We found a correlation of around 50% – suggesting that a sizeable chunk of UK risk requirements have been addressed to some extent in the PRA document.