The PRA has published Consultation Paper 25/14: The PRA Rulebook: Part 2 (CP25/14).
CP25/14 sets out proposals to redraft certain modules of the PRA Handbook. It is the second in a planned series of consultations aimed at reshaping Handbook material the PRA inherited from the FSA to create a Rulebook, containing only PRA rules.
CP25/14 contains the PRA’s proposals to:
- replace the rules and guidance in chapter 11 (Controllers and close links) of the Supervision manual (SUP 11) and SUP 16.4 (Annual controllers report) with a new Rulebook Part ‘Change in Control’ and a new supervisory statement ‘Aggregation of holdings for the purpose of prudential assessment of controllers’;
- replace the rules set out in SUP 11.9 (Changes in close links) and SUP 16.5 (Annual close links reports) with a new Rulebook Part ‘Close Links’;
- amend the existing Notifications Part to include two new rules that set out requirements on firms to verify the accuracy of standing data and report changes to the PRA. The draft rules will replace the rules in SUP 16.10 (Verification of standing data). The draft rules are in substance the same as the rules in SUP 16.10;
- replace chapters 1, 4 and 6 of the General Provisions sourcebook (GEN) with a new Rulebook Part ‘General Provisions’. Chapter 2 of GEN will be deleted once the Handbook is deleted, as it is necessary to keep it in force to assist readers to interpret the Handbook;
- replace the rules and policy in chapters 4 to 9 of the Senior Management Arrangements, Systems and Controls sourcebook (SYSC), with six new Rulebook Parts, and one supervisory statement ‘Internal governance’;
- replace the guidance in the Building Societies Regulatory Guide and the Building Societies sourcebook with two new supervisory statements ‘Exercising certain functions under the Building Societies Act 1986’ and ‘Supervising building societies’ treasury and lending activities’; and
- replace the guidance in SUP 18 with a statement of policy ‘The Prudential Regulation Authority’s approach to insurance business transfers’.
The deadline for comments on CP25/14 is 23 January 2015.
View Consultation Paper 25/14 The PRA Rulebook: Part 2, 24 November 2014