The UK Prudential Regulation Authority (PRA) has published its updated approach to policy under the regulatory framework as set out in UK Financial Services and Markets Act 2000. The approach document has been amended following the consultation (CP27/23) and is published with the PRA's policy statement which provides feedback to the consultation responses. The CP had, in particular, asked for feedback on the PRA's secondary competitiveness and growth objective, the implementation of international standards, and stakeholder engagement, in the context of the PRA's enhanced objective and accountability requirements introduced by FSMA 2023.
With regard to the secondary competitiveness and growth objective, the PRA reiterates a number of the points raised by the Independent Evaluation Office during its evaluation of the PRA's approach to its new objective, including the PRA's clarification that the most appropriate way to advance the secondary competitiveness and growth objective is to take forward a wide range of initiatives across its general functions, rather than via a single flagship initiative.
The policy statement also emphasises the PRA's work on stakeholder engagement on the new objective, including the new communication channels and fora established by the PRA to facilitate discussion and gather industry input. Regarding implementation of international standards, the policy statement, among other things, confirms that the approach document has been updated to clarify the extent of the PRA's cooperation with the relevant European Supervisory Authorities in support of coordinated international action. The approach document takes effect on the date of publication, 20 February.
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