PRA has issued its supervisory statement on internal governance of third country branch operations in the UK. It sets out PRA’s expectations for these branches and how firms should comply with the Internal Governance of Third Country Branches parts of the Rulebook. The rules and statement cover:

  • general organisational requirements;
  • persons who effectively direct the business;
  • responsibility of senior personnel;
  • skills, knowledge and expertise;
  • compliance and internal audit;
  • risk control;
  • outsourcing; and
  • record keeping.

It replaces previous guidance from chapters 4 to 9 and 21 of SYSC in the FCA Handbook. Where relevant, it takes into account the requirements of the SMR which apply to third country branches. The rules take effect from 7 March, with the SMR. (Source: PRA issues statement on internal governance of third country branches)