The Prudential Regulation Authority (PRA) has published its final rules outlining how UK banks, building societies and other designated firms should manage large exposures. A key focus is identifying groups of connected clients (GCCs), in which multiple clients pose a single risk to a firm. The policy is based on the European Banking Authority’s (EBA) 2017 Guidelines, which explain how firms should consolidate two or more clients into a single risk due to either control or economic dependency. The PRA has adopted the EBA’s framework with amendments to reflect the UK’s regulatory context. The final policy includes clarifications on the application of control, the treatment of central banks and central governments and the use of an alternative approach for exposures to entities linked to a central government. SS3/25 sets out the PRA’s expectations in relation to the approach firms should take when grouping two or more clients into a ‘group of connected clients’. The amended large exposures rules and accompanying policy material will be effective from 1 January 2026.

The Prudential Regulation Authority (PRA) has published policy statement PS15/24 finalising its rules and policy materials that will replace Solvency II assimilated law. The publication, together with three statements of policy and two supervisory statements, marks the conclusion of the PRA’s phased consultation approach to the Solvency II Review, which began in 2020. The PRA has also published consultation paper CP15/24, Proposed changes to the UK Insurance Special Purpose Vehicles (UK ISPV) regulatory framework, with responses sought by 14 February 2025.

The Prudential Regulation Authority (PRA) has fined The Bank of London Group Limited and Oplyse Holdings Limited (formerly The Bank of London Group Holdings Limited) £2 million for misleading the regulator over their capital positions, failing to act with integrity, failing to be open and co-operative with the regulator and failing to maintain adequate financial resources. This is the first time the PRA has fined a firm for failing to conduct its business with integrity, and the first time the PRA has taken enforcement action against a parent financial holding company of a firm.

The Prudential Regulation Authority (PRA) has announced that is has fined HSBC Bank plc (HBEU) and HSBC UK Bank plc (HBUK) £57,417,500 for historic depositor protection failings arising from their failures over many years to properly implement the requirements set out in the Depositor Protection Rules. This is the first PRA enforcement action in relation to Fundamental Rule 8, which states that firms must prepare for resolution so, if the need arises, they can be resolved in an orderly manner with a minimum disruption of critical services.

The Prudential Regulation Authority (PRA) has fined George Hambro, a former notified non-executive director (NED) of Wyelands Bank Plc, £72,000 for breaching PRA Individual Conduct Rule 2 by failing to act with due skill, care, and diligence between 3 July 2017 and 19 February 2020. Hambro's conduct fell below the expected standards in relation to the recognition of capital, large exposure assessments, and managing potential conflicts of interest between Wyelands and the GFG Alliance in line with Wyeland’s internal policy. The penalty includes a material adjustment for deterrence. Hambro agreed to resolve the matter after the discount period and therefore did not qualify for a 30% reduction in the fine.

On 30 September 2024 the Prudential Regulation Authority (PRA) held a roundtable meeting on the internal ratings based (IRB) approach to calculate capital requirements for mortgage exposures, aiming to clarify common cross-firm modelling issues and highlight practical challenges in developing compliant IRB models.

The Prudential Regulation Authority (PRA) has announced that it hosted a roundtable on 19 May 2025 with chief financial officers from the UK’s largest and most systemic firms to discuss the Future Banking Data (FBD) project. Senior representatives from the Bank of England (BoE) and the Financial Conduct Authority (FCA) also attended. The session focused on gathering feedback on planned deliverables for the year ahead and shaping the longer-term direction of the FBD initiative, which aims to create a coherent, proportionate, and cost-effective reporting framework for UK firms. The PRA plans to continue engagement through trade associations and will provide an update to CFOs in Q3 2025. A multi-year vision for reporting reform is expected by the end of 2025, alongside a discussion paper on data use and challenges.

The Prudential Regulation Authority (PRA) has published the presentation slides shared in its roundtable discussions on artificial intelligence (AI) and machine learning (ML) held in the context of Supervisory Statement (SS)1/23 Model risk management principles for banks. The PRA continues to treat model risk management (MRM) as a strategic supervisory focus area. The slides set out the PRA's current thinking on the risks identified in AI and ML adoption, in the context of implementing the expectations set out in SS1/23.

The Prudential Regulation Authority (PRA) has fined Mr Iain Mark Hunter, the former chief executive officer (CEO) of Wyelands Bank Plc £118,808 for material breaches of three PRA Conduct Rules between 7 March 2016 and 28 May 2020 (the Relevant Period). The PRA’s decision follows that in April 2023 to publicly censure Wyelands, which entered wind down in March 2020, for significant regulatory failings.

The Prudential Regulation Authority (PRA) has issued policy statement PS2/25 - Streamlining firm-specific capital communications which provides feedback on responses to Chapter 3 of consultation paper CP9/24 and amendments to the PRA Rulebook and supervisory statements SS31/15 and SS45/15. PS2/25 also contains the PRA’s final policy and rules to streamline firm-specific capital communications, which simplify the content and process of the firm-specific capital communications used to set Pillar 2A, the systemic buffers and the Additional Leverage Ratio Buffer (ALRB). These changes, which have no impact on firms’ capital requirements, aim to reduce costs and improve efficiency. The new rules will take effect on 31 March 2025, with no specific actions required from firms for implementation.

The Prudential Regulation Authority (PRA) has published policy statement PS13/24—Funded reinsurance, which provides feedback to responses received to consultation paper CP24/23—Funded reinsurance, and the PRA’s final policy in the form of supervisory statement SS5/24—Funded reinsurance. SS5/24 takes effect on 26 July 2024. The PRA has also issued a Dear CEO letter: Supervisory statement SS5/24—Funded reinsurance: Implementation approach, which sets out in more details the implementation approach for the SS and the approach that it expects firms to take in their self-assessment against the expectations of the SS.

The Prudential Regulation Authority (PRA) has fined Barents Reinsurance S.A.'s London Branch £1.785m for regulatory breaches between July 2021 and October 2023. This is the first time the PRA has fined a firm operating purely as a reinsurer. The Luxembourg-based reinsurer failed to adequately prepare for post-Brexit regulatory requirements while operating under the Temporary Permissions Regime, breaching fundamental rules on governance and reporting. The fine, reduced by 30% for early stage settlement, marks the PRA's first enforcement action against a pure reinsurer. Barents is now in Supervised Run-Off and winding down UK operations.