Prudential Regulation Authority Rulebook

1

The Bank of England (‘Bank’) uses regulatory, supervisory, and enforcement powers to pursue its mission of financial stability, and related to that, to advance the Prudential Regulation Authority’s (PRA) statutory objectives. Through regulation, the PRA develops standards and policies that set out what it requires and expects of firms. Through supervision, the PRA monitors and assesses whether firms are meeting its requirements and expectations. Where they do not, the PRA can take action – supervisory or enforcement – to reduce the risks that might arise. The PRA’s approach to regulation and supervision is forward-looking, judgement-based, and focused on the issues and firms that pose the greatest risk to the stability of the UK financial system and (in the case of insurers) to policyholders. The PRA’s approach to enforcement supports and supplements its regulatory and supervisory tools by ensuring that the PRA has credible mechanisms for holding its regulated firms to account where they do not meet the PRA’s requirements and expectations.

2

The PRA regularly takes different types of decisions in order to advance its objectives. These range from decisions on policymaking to firm-specific decisions. This PRA statement of policy sets out:

1. (a) the PRA’s allocation of decision-making regarding statutory notices (Warning Notices, Decision Notices, Final Notices, and Supervisory Notices);
2. (b) the PRA’s approach to decision-making on statutory notices in relation to supervisory decisions under the Financial Services and Markets Act 2000 (‘the Act’); and
3. (c) the PRA’s approach to publication of supervisory cases.

3

Separate statements of policy are published in relation to enforcement cases.