Prudential Regulation Authority—authorisation
Prudential Regulation Authority—authorisation

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Prudential Regulation Authority—authorisation
  • The regulatory structure
  • What is PRA authorisation and what does it involve?
  • Applying for permission
  • Duty of the PRA to consult the FCA
  • Requirements
  • Submitting an application for authorisation to the PRA
  • Assessment criteria
  • SM&CR and SIMR
  • The decision process
  • More...

Firms who wish to carry one or more PRA-regulated activities as set out in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544), must be directly authorised by the PRA. This Practice Note sets out the steps for the PRA authorisation process.

For guidance on PRA regulated activities, please see PRA-regulated activities and the scope of PRA regulation.

The regulatory structure

On 1 April 2013 ('legal cut-over'), the Financial Services Authority (FSA) was abolished. Its powers and functions relating to the authorisation of firms were divided between the PRA, who became responsible for prudential regulation, and the Financial Conduct Authority (FCA), responsible for market conduct regulation.

Those firms already authorised on 1 April 2013 were automatically grandfathered over to the new regulators and did not need to re-apply for authorisation. Their role and responsibilities remain the same. The PRA is responsible for the authorisation and prudential regulation of PRA-authorised firms—firms who are systemically important such as banks, insurers and investment firms that are designated by the PRA as presenting ‘significant risks to the stability of the financial system’. PRA-authorised firms are regulated by the FCA with respect to non-prudential matters and are known as 'dual-regulated firms'.

Most firms previously regulated by the FSA have had the FCA as their sole regulator since 1 April 2013.

Dual-regulated firms have had to adapt to supervision

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