On 30 June 2014, the Prudential Regulation Authority (“PRA”) launched a consultation on proposed changes to its rules and supervisory statements for credit risk mitigation, credit risk, governance and market risk. The consultation covers, amongst other things, proposals on (i) permissions to use own estimates on volatility adjustments; (ii) permissions to use the advanced internal ratings-based approach for exposures to central governments, central banks and public sector entities; (iii) a rule to introduce stricter criteria for the application of a 50% risk weight to certain commercial real estate exposures located in non-EEA countries; and (iv) guidance for firms on limitations on directorships and how to report risks not in VaR requirements.

The consultation paper is available at: http://www.bankofengland.co.uk/pra/Documents/publications/cp/2014/cp1214.pdf