The PRA has published Policy Statement 8/16: Internal governance of third country branches and response to CP3/16 (PS8/16), together with a Supervisory Statement on the internal governance of third country branches.
Chapter 2 of PS8/16 is relevant to all third country branches. Chapter 3 is relevant to all PRA-authorised firms. The final rules and Supervisory Statement will take effect from 7 March 2016.
The rules and Supervisory Statement regarding the internal governance of third country branches included in the appendices to PS8/16 replace the rules and guidance respective in chapters 4 – 9 and 21 of the Senior Management Arrangements, Systems and Controls (SYSC) section of the Handbook. The rules and Supervisory Statement cover the following areas:
- general organisational requirements;
- persons who effectively direct the business;
- responsibility of senior personnel;
- skills, knowledge and expertise;
- compliance and internal audit;
- risk control;
- outsourcing; and
- record keeping.
The Supervisory Statement should be read in conjunction with the PRA Fundamental Rules and with:
- Internal Governance of Third Country Branches parts of the PRA Rulebook;
- the PRA’s approach to banking supervision;
- Supervisory Statement 10/14: Supervising international banks: the PRA’s approach to branch supervision;
- Policy Statement 20/15: Strengthening individual accountability in banking: UK branches of non-EEA banks; and
- Supervisory Statement 28/15: Strengthening individual accountability in banking.
View Internal governance of third country branches and response to CP3/16 – PS8/16, 26 February 2016
