PRA consults on Rulebook reform: PRA is consulting on redrafting certain modules of its Handbook to bring it within its new Rulebook format. It plans to bring across several existing modules, redrafted as appropriate:

  • the Principles for Business will become "The Fundamental Rules": Six of the Principles apply to PRA firms and will be the core of PRA's supervisory approach. PRA has redrafted them to be rules that express its general objective and the recommendations of the Parliamentary Commission on Banking Standards and has added a new principle relating to resolution preparation;
  • Chapter 2 of the Supervision Manual (SUP) becomes "Information Gathering";
  • SUP 3 becomes "Auditors";
  • SUP 5 becomes "Use of Skilled Persons";
  • SUP 6 and SUP 8 become "Permissions and Waivers";
  • SUP 15 becomes "Notifications";
  • the Financial Stability and Market Confidence Sourcebook (FINMAR) becomes "Statement of policy on the exercise of the PRA's financial stability information power; and
  • the table in SUP 13A Annex 1 on the application of the Handbook to incoming EEA firms will be moved to the PRA website.

The consultation includes drafts of the new look rules and consequential amendments to parts of the Handbook. Respondents to PRA's consultation about the creation of its Rulebook had been unhappy about the perceived removal of guidance. PRA stresses it will still give guidance, but in supervisory statements as appropriate. PRA asks for comment by 14 March. (Source: PRA Consults on Rulebook Reform)