The PRA has published Consultation Paper 17/15: The PRA Rulebook: Part 3 (CP17/15).

CP17/15 is the third in a planned series of consultations aimed at reshaping the Handbook material that the PRA inherited from the FSA.

The proposals in CP17/15 include:

  • replacing the rules in chapter 13 (Exercise of passport rights by UK firms) of the Supervision manual (SUP) with a new Rulebook part called ‘Passporting’;
  • replacing the rules set out in SUP 16.12 (Integrated Regulatory Reporting) and SUP 16.16 (Prudential Valuation Reporting) with a new Rulebook Part ‘Regulatory Reporting’ and the guidance in the Annexes to SUP 16 with a new supervisory statement ‘Guidelines for completing regulatory reports’;
  • replacing the rules and policy in chapters 4 to 9 of the Senior Management Arrangements, Systems and Controls sourcebook (SYSC) (as they apply to UK branches of banks, building societies and investment firms incorporated outside the EU) with one new Rulebook Part ‘Internal governance of third country branches’, and one supervisory statement ‘Internal governance of third country branches’; and
  • replacing the rules and guidance in chapter 20 (Reverse stress testing) of SYSC including chapter 15 on the Internal capital adequacy assessment part and updating the draft supervisory statement ‘The Internal capital adequacy assessment process (ICAAP) and the supervisory review and evaluation process (SREP)’ that was previously consulted on.

It is also proposed that the Prudential sourcebook for mortgage and home finance firms and insurance intermediaries, chapter 21 (Permitted Links) of the Conduct of Business sourcebook and chapter 10 of SYSC (conflicts of interest) be deleted from the PRA Handbook with no corresponding Rulebook Part or supervisory statement being made.

The deadline for comments on CP17/15 is 30 June 2015.

View The PRA Rulebook: Part 3 – CP17/15, 30 April 2015