Prudential Regulation Authority (United Kingdom) - Wikipedia

The Prudential Regulation Authority (PRA) is a United Kingdom financial services regulatory body, formed as one of the successors to the Financial Services ... PrudentialRegulationAuthority(UnitedKingdom) FromWikipedia,thefreeencyclopedia Jumptonavigation Jumptosearch UnitedKingdomfinancialservicesregulator PrudentialRegulationAuthorityAbbreviationPRAPredecessorFinancialServicesAuthorityFormation1April2013Headquarters20MoorgateLondonEC2R6DARegionservedUnitedKingdomKeypeopleAndrewBailey(GovernoroftheBankofEngland)SamWoods(DeputyGovernoroftheBankofEnglandandChiefexecutive)MainorganPrudentialRegulationCommitteeParentorganisationBankofEnglandWebsitebankofengland.co.uk/praFormerlycalledPrudentialRegulationAuthorityLimited ThePrudentialRegulationAuthority(PRA)isaUnitedKingdomfinancialservicesregulatorybody,formedasoneofthesuccessorstotheFinancialServicesAuthority(FSA).[1][2][3]Theauthorityisresponsiblefortheprudentialregulationandsupervisionofbanks,buildingsocieties,creditunions,insurersandmajorinvestmentfirms.Itsetsstandardsandsupervisesfinancialinstitutionsattheleveloftheindividualfirm.[1][2][3][4][5]AlthoughitwasinitiallystructuredasalimitedcompanywhollyownedbytheBankofEngland,thePRA'sfunctionshavenowbeentakenoverbytheBankandareexercisedthroughthePrudentialRegulationCommittee.[6]Thecompanyhassincebeenliquidated.[7] ThePRAwascreatedbytheFinancialServicesAct2012andformallybeganoperatingalongsidethenewFinancialConductAuthorityon1April2013.[1]AstheBankofEnglandisoperationallyindependentoftheGovernmentoftheUnitedKingdom,thePRAisaquasi-governmentalregulator,ratherthananarmofthegovernmentperse.[2]ThePRAhasitsmainofficesat20Moorgate,neartheBankofEngland'scentralofficesonThreadneedleStreet.[8] Contents 1Role 1.1Listofchiefexecutives 2History 3References 4Externallinks Role[edit] ThePRA'sroleisdefinedintermsoftwostatutoryobjectives:topromotethesafetyandsoundnessofthefirmsitregulatesand,specificallyforinsurers,tocontributetothesecuringofanappropriatedegreeofprotectionforpolicyholders(section12ofthePRAStatementofPolicy).[9]Inpromotingsafetyandsoundness,thePRAfocusesprimarilyontheharmthatfirmscancausetothestabilityoftheUKfinancialsystem.Astablefinancialsystemisoneinwhichfirmscontinuetoprovidecriticalfinancialservices–apreconditionforahealthyandsuccessfuleconomy. ItwillhavecloseworkingrelationshipswithotherpartsoftheBank,includingtheFinancialPolicyCommitteeandtheSpecialResolutionUnit.[10]ThePRA'smostsignificantsupervisorydecisionsaretakenbythePrudentialRegulationCommittee–comprisingtheGovernoroftheBankofEngland,theDeputyGovernorforFinancialStability,theDeputyGovernorforMonetaryPolicy,theDeputyGovernorforMarkets&Banking,thechiefexecutiveofficerofthePRA(andDeputyGovernorforPrudentialRegulation)andindependentnon-executivemembers.[11] ThePRA'sapproachtoregulationandsupervisionhasthreecharacteristics:[12] Ajudgement-basedapproach:ThePRAwillusejudgementindeterminingwhetherfinancialfirmsaresafeandsound,whetherinsurersprovideappropriateprotectionforpolicyholdersandwhetherfirmscontinuetomeetthethresholdconditions. Aforward-lookingapproach:ThePRAwillassessfirmsnotjustagainstcurrentrisks,butalsoagainstthosethatcouldplausiblyariseinthefuture.WherethePRAjudgesitnecessarytointervene,itwillgenerallyaimtodosoatanearlystage. Afocusedapproach:ThePRAwillfocusonthoseissuesandthosefirmsthatposethegreatestrisktothestabilityoftheUKfinancialsystemandpolicyholders. ThePRAapproachtosupervisionwillnotseektooperatea"zero-failure"regime.Rather,thePRAwillseektoensurethatafinancialfirmwhichfailsdoessoinawaythatavoidssignificantdisruptiontothesupplyofcriticalfinancialservices.[13] Listofchiefexecutives[edit] ThechiefexecutiveofthePRAisalsotheBankofEnglandDeputyGovernorforPrudentialRegulation.ThefollowingisalistofchiefexecutivessincethePRA'sinception: Name Period AndrewBailey 2013–16 SamWoods 2016– History[edit] From1April2013,thePrudentialRegulatoryAuthority,alongsidetheFinancialConductAuthority,replacedtheFinancialServicesAuthority.[14] InresponsetotheonsetoftheCOVID-19pandemicintheUnitedKingdominMarch2020,thePRAsentaformalrequesttothesevenlargestBritishlenderstosuspenddividendsandsharerepurchasesuntiltheendoftheyear.[15][16] References[edit] ^abcVina,Gonzalo."U.K.ScrapsFSAinBiggestBankRegulationOverhaulSince1997".BloombergBusinessWeek.Bloomberg.Retrieved16June2010. ^abc"NewsRelease–PrudentialRegulationAuthority:thefutureapproachtobankingsupervision".BankofEngland.Retrieved19August2012. ^ab"ThePrudentialRegulationAuthority:whatitdoesandwhoisincharge".TheTelegraph.8November2011.Retrieved19August2012. ^"Reformandregulation".HMTreasury.17June2010.Retrieved17June2010. ^Goff,Sharlene;Masters,Brooke;Murphy,Megan(16June2010)."Q&A:Bankgivenclearresponsibilityforfinancialstability".FinancialTimes.Retrieved19August2012. ^"BankofEnglandandFinancialServicesAct2016:Section12",legislation.gov.uk,TheNationalArchives,4May2016,2016c.14(s.12),retrieved7November2020 ^"PRUDENTIALREGULATIONAUTHORITYLIMITED".find-and-update.company-information.service.gov.uk.CompaniesHouse.Retrieved7November2020. ^Jenkins,Patrick(11April2012)."PrudentialRegulatoryAuthorityselectsHQ".FinancialTimes.Retrieved19August2012. ^"StatementofPolicy"(PDF).BankofEngland.p. 3. ^"PrudentialRegulationAuthority–Approach"(PDF).BankofEngland.May2011.p. 17. ^"PrudentialRegulationCommittee".www.bankofengland.co.uk.Retrieved7November2020. ^"PrudentialRegulationAuthority–About".BankofEngland. ^"TwoyearsonfromtheMarch2013publicationofAreviewofrequirementsforfirmsenteringintoorexpandinginthebankingsector"(PDF).BankofEngland.11March2015. ^Haill,Oliver(8May2013)."WhytheFSAwassplitintotwobodies".FTAdvisor.Retrieved23June2021. ^Morris,Stephen;Crow,David;Giles,Chris(1April2020)."BritishlenderssuspenddividendsafterBoEpressure".FinancialTimes.Retrieved23June2021. ^Jones,Huw(10December2020)."BankofEnglandrelaxescoronaviruscurbsonbankdividendsandbonuses".Reuters.Retrieved23June2021. Externallinks[edit] Officialwebsite AuthoritycontrolGeneral VIAF 1 WorldCat Nationallibraries UnitedStates Retrievedfrom"https://en.wikipedia.org/w/index.php?title=Prudential_Regulation_Authority_(United_Kingdom)&oldid=1030050354" Categories:BankofEnglandHMTreasuryFinancialservicescompaniesestablishedin2013FinancialregulatoryauthoritiesoftheUnitedKingdom2013establishmentsintheUnitedKingdomGovernmentagenciesestablishedin2013SecuritiesandexchangecommissionsBankregulationHiddencategories:ArticleswithshortdescriptionShortdescriptionmatchesWikidataUsedmydatesfromOctober2015EngvarBfromOctober2015OfficialwebsitedifferentinWikidataandWikipediaArticleswithVIAFidentifiersArticleswithWORLDCATIDidentifiersArticleswithLCCNidentifiers Navigationmenu Personaltools NotloggedinTalkContributionsCreateaccountLogin Namespaces ArticleTalk English Views ReadEditViewhistory More Search Navigation MainpageContentsCurrenteventsRandomarticleAboutWikipediaContactusDonate Contribute HelpLearntoeditCommunityportalRecentchangesUploadfile Tools WhatlinkshereRelatedchangesUploadfileSpecialpagesPermanentlinkPageinformationCitethispageWikidataitem Print/export DownloadasPDFPrintableversion Languages DeutschNorskbokmål Editlinks