PRA Publishes Update on Financial Resilience

The Prudential Regulation Authority has published an update on rules for financial resilience and solvency, which will come into effect next year.

In summary;

Overview

This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 29/19 Operational resilience: Impact tolerances for important business services (page 2 of 3). It also contains the PRA’s final policy, as follows:

• a new Operational Resilience Parts of the PRA Rulebook (Appendix 1);
• amendments to the Group Supervision Part of the PRA Rulebook (Appendix 1);
• a new Supervisory Statement (SS) 1/21 ‘Operational resilience: Impact tolerances for important business services’ (Appendix 2); and
• a new Statement of Policy (SoP) ‘Operational resilience’ (Appendix 3).

This PS is relevant to:

• UK banks, building societies, and PRA-designated investment firms (banks); and
• UK Solvency II firms, the Society of Lloyd’s and its managing agents (insurers).

You can read more at the PRA website here.

ABI REACTION

Charlotte Clark, ABI Director of Regulation, says:

“Ensuring customers are protected from disruption to vital services is a priority for our members and we welcome these new requirements to further strengthen operational resilience in the financial services sector. It’s right that firms have a consistent approach across their organisation to identify key business services and ensure that plans are in place to prevent, adapt, respond and recover from operational disruption to limit potential harm to customers and the market. Today’s publications from the FCA and PRA will help drive forward the agenda in this important area.”