FSA and BoE have produced a draft with-profits MoU that lays down additional coordination arrangements between the Prudential Regulation Authority (PRA) and FCA in respect of with-profit policies. The discretion as to the amount of bonus that the insurer distributes among policyholders must be checked against fairness to consumers and prudential soundness, which are the objectives of FCA and PRA respectively. The MoU looks at the role of each regulator in relation to the financial and transparency issues relevant to with-profits policies. It then deals with the regulators’ commitment to notifying each other of relevant actions, information sharing and consultation when making rules. (Source: Draft With-Profits MoU)