PRA speaks on prudential policy: Katharine Braddick has spoken on the changing face of prudential policy. She focused on the need to put in place a system that allows institutions to fail without passing the costs of failure to society. She also stressed the need to engage with behaviour of key individuals within critical institutions, including on remuneration. She spoke of PRA's support for the draft standard on material risk takers and its hope that the EU regulators will pass the standard so it can take effect. Her final theme was the report of the Parliamentary Commission on Banking Standards (PCBS) and the powers PRA gets under the Banking Reform Act. One major part of this work will be addressing the criticisms of the approved persons regime. Separately, PRA published its statement of strategy, which updates its objectives introduced by the Financial Services Act 2012 to include also the PCBS Recommendations. (Source: PRA Speaks on Prudential Policy)

PRA consults on Solvency 2 expectations: PRA is seeking views, until 14 April, on a draft supervisory statement setting out its expectations in relation to the calculation of technical provisions and the use of internal models under Solvency 2. The new regime enters into force on 1 January 2016, and PRA expects to get, from 31 March 2015, powers to decide on firms' applications. Firms need therefore to consider PRA's expectations when preparing for the new regime. Although the statement is informed by PRA's ongoing work and covers areas where Solvency 2 allows discretion by national supervisors, it may still have to be reviewed in the light of forthcoming European delegated acts and guidelines. (Source: Solvency 2: Technical Provisions and Internal Models for Insurers