On 29 November 2022, the PRA published Policy Statement 9/22: Amendments to the PRA’s approach to identifying other systemically important institutions (PS9/22).

The PRA is required to identify and publish a list of other systemically important institutions (O-SIIs) under Article 32 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014 (the Capital Buffers Regulations). The criteria for O-SII identification are derived from Article 31 of the Capital Buffers Regulations.

The final rules contained in PS9/22 follow the PRA’s earlier consultation (Consultation Paper 13/22) in which the PRA proposed certain changes to the criteria and scoring methodology it uses to identify O-SIIs. The changes the PRA proposed would result in amendments to the Statement of Policy (SoP) on ‘The PRA’s approach to identifying O-SIIs’ and an amendment to the SoP on ‘Interpretation of EU Guidelines and Recommendations: Bank of England and PRA approach after the UK’s withdrawal from the EU’.

In PS9/22 the PRA has made two modifications to the draft SoP on ‘The PRA’s approach to identifying O-SIIs’:

  • In response to feedback received, added a paragraph to clarify the interaction of O-SII designation with the O-SII buffer.
  • Removed its intention to publish scores and the rationale for any use of supervisory judgement.

The changes to both SoPs become effective from 29 November 2022.

The PRA has at the same time published the 2022 list of firms designated as O-SIIs, under the updated policy.