On 20 February 2025, the Prudential Regulation Authority (PRA) published a Policy Statement, PS3/25, on its approach to policy.
Background
The PRA consulted on its proposals in CP27/23 (published in December 2023). In CP27/23, it explained that its approach to policy is evolving as it takes on wider rule making responsibilities and enhanced accountability requirements, following reforms to the UK financial services regulatory framework introduced through the Financial Services and Markets Act 2023.
Approach to policy
In PS3/25, the PRA provides feedback to responses it received to CP27/23 and also sets out its final Approach to Policy document. The Approach to Policy document sets out how the PRA carries out its role in practice and is designed to help firms and the public understand how it makes policy and their role in that process, as well as aiding accountability to the public and Parliament.
Included in the Approach document is information on:
- The PRA’s objectives and regulatory principles.
- Its approach to those objectives and regulatory principles.
- Its approach to international engagement and collaboration.
- The policy cycle.
- Delivering a first-rate PRA Rulebook.
Implementation
The final version of the Approach document took effect upon publication.