FSA and the Bank of England (BoE) have published a paper setting out the approach the new Prudential Regulation Authority (PRA) plans to take to supervise banks, building societies, credit unions and investment firms. The paper looks at PRA’s scope, its risk assessment framework, and its approach to supervision, policy-making and authorisation and approval of firms and individuals. Hector Sants, speaking at the PRA Banking Conference, said PRA would offer a significantly different model of supervision, based on forward-looking judgements and bearing in mind the PRA’s objective to promote stability of the UK financial system. Andrew Bailey of BoE said the PRA will use a new framework to assess risks to stability. The document also looks in more detail at the approach the PRA will take to policy-making and to authorising firms and approving individuals. It will cover a separate paper shortly setting out how it plans to supervise insurance companies. (Source: Press Release on PRA, Hector Sants Speech on PRA, Andrew Bailey Speech on PRA and PRA Approach Paper)