On 25 November 2021, the PRA published Consultation Paper 21/21: Operational Resilience and Operational Continuity in Resolution: CRR firms, Solvency II firms, and Financial Holding Companies (for Operational Resilience) (CP21/21). In CP21/21 the PRA sets out proposals to apply the group provisions in the Operational Resilience Part of the PRA Rulebook relevant to Capital Requirements Regulation (CRR) firms to holding companies and mixed financial holding companies, and to make other minor formatting and clarification amendments to the Operational Resilience (Appendix 1) and Operational Continuity Parts of the PRA Rulebook.

Among other things the PRA proposes to apply chapter 8 (Group Arrangements) of the Operational Resilience Part to financial and mixed activity holding companies in order to more effect the initial policy intention which stated that, where applicable, ‘a group-level view’ of operational resilience is taken. This ‘ensures that the risks of the whole group, including those parts that are not subject to individual requirements, are taken into account’. The PRA adds that applying these obligations on these holding companies directly rather than on individual firms within their groups would be more proportionate and would align the Operational Resilience Part with the PRA’s approach to consolidated prudential  requirements, as per the proposals in Consultation Paper 12/21 ‘Financial holding companies: Further Implementation’ and final policy in Policy Statement 20/21 ‘Financial holding companies: Further Implementation’.

The deadline for responses to CP21/21 is 14 January 2022.