In its business plan for 2018-2019, the PRA also notes that it will need to devote a large amount of its resources to ensuring a smooth transition to a “sustainable and resilient UK financial regulatory framework” post-Brexit and facilitating “an orderly UK withdrawal from the European Union”. In addition to this, the plan identifies the following strategic goals for the PRA:

  • Have in place robust prudential standards comprising the post-crisis regulatory regime.
  • Continue to adapt to changes in the external market and to hold regulated firms, and those who run them, accountable for meeting PRA standards.
  • Ensure that firms are adequately capitalised, and have sufficient liquidity, for the risks they are running or planning to take.
  • Develop supervision of operational resilience to mitigate the risk of disruption to the provision of critical economic functions.
  • Ensure that banks and insurers have credible plans in place to enable them to recover from stress events, and that the PRA has a credible resolution strategy to manage a firm's failure (proportionate to the firm's size and systemic importance) in an orderly manner.
  • Facilitate effective competition by actively considering the proportionality of the PRA’s approach as it contributes to the safety and soundness of the UK financial system.
  • Operate effectively by ensuring that resources are allocated to work that best advances the PRA’s strategy.