The following Financial Services guidance note provides comprehensive and up to date legal information covering:
The general objective of the Prudential Regulation Authority (PRA) is to promote the safety and soundness of the firms it regulates. Its objectives are primarily met by seeking:
to ensure the business of PRA regulated firms is carried out to avoid an adverse effect (ie a disruption to the continuity) on the stability of the financial system, and
to minimise the adverse effect any failure (eg insolvency) by a PRA regulated firm could have on that stability
This Practice Note looks at how the PRA assesses the risk that PRA regulated firms present to the UK financial system. It complements a range of Practice Notes in Lexis®PSL including: Prudential Regulation Authority—supervisory approach—deposit-takers, , Prudential Regulation Authority—Proactive Intervention Framework and Prudential Regulation Authority—designation of investment firms.
The PRA is responsible for the prudential regulation of deposit-takers, insurers and major investment firms in the UK. In regulating these entities it seeks to promote their safety and soundness in order to avoid adverse effects to the stability of the financial system. It is not the role of the PRA to ensure that no firm fails but instead it focuses on ensuring that any failure does not result in significant disruption to the supply of financial services. The PRA supervises firms to judge whether they are safe and sound and meet the threshold conditions, see Practice Note:
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