- In relation to the largest domestic banks and building societies that pose most risk to financial stability (i.e. those with total assets over £50bn), the PRA will require their external auditors to provide written reports to the PRA as part of the statutory audit cycle.
- The PRA plans to bring into force its powers to apply disciplinary measures to an auditor or actuary that has failed to comply with a duty imposed by rules of the PRA or failed to comply with a duty under FSMA to communicate information to the PRA.
These changes have the potential for significant operational and financial impact on audit firms and there remain a number of areas where the PRA's plans would benefit from further consideration. We have therefore submitted a response to the consultation paper.