PRA enforcement action—process
Produced in partnership with Sarah Clarke of 3 Serjeants’ Inn
PRA enforcement action—process

The following Financial Services guidance note Produced in partnership with Sarah Clarke of 3 Serjeants’ Inn provides comprehensive and up to date legal information covering:

  • PRA enforcement action—process
  • Decision making committees
  • Warning notices and first supervisory notices
  • Decision notices and second supervisory notices
  • Publicising an enforcement action
  • Publicity during PRA investigations
  • Publicity of regulatory action—warning notices
  • Publicity at the conclusion of regulatory action—supervisory, decision and final notices
  • Making representations on issues of publicity
  • Who will take decisions on publicity?
  • more

Decision making committees

Decisions as to whether to give a statutory notice will be taken by an appropriate decision making committee (DMC). There are four levels of DMC made up of different levels of seniority of PRA staff:

  1. Prudential Regulation Authority (PRA) Board

  2. Supervision, Risk and Policy Committee (SRPC)

  3. Supervision and Assessment Panel (SAP)

  4. Panel of Heads of Departments and Managers (HMP)

The PRA approaches decisions to give statutory noticed by dividing the firms it supervises into five categories of impact. It also divides statutory decisions into three categories—Types A, B and C. The level of DMC to make a decision is determined by the category of the firm in conjunction with the anticipated impact of the decision on a firm’s ability to carry out its business effectively and/or the impact on the PRA’s objectives. Note that PRA staff decide which category each decision falls under and firms may find it difficult to challenge these decisions. In summary, the more significant the firm and the greater the decision’s impact, the more senior the composition of the DMC.

Warning notices and first supervisory notices

As with the Financial Conduct Authority (FCA), if PRA staff consider that action requiring a warning or first supervisory notice is appropriate, they will recommend to the relevant DMC that the notice be given. In