The Prudential Regulation Authority (PRA) has published the 2025 lists of UK-headquartered globally systemically important institutions (G-SIIs) and UK firms designated as other systemically important institutions (O-SII). The PRA has also set the 2025 O-SII buffer rates for ring-fenced banks (RFBs), large domestic firms, and large building societies. The buffer will apply from 1 January 2027.

The Prudential Regulation Authority (PRA) has published a direction for modification by consent (MbC) of rules 20.1 and 20.2 of the Group Supervision part of the PRA Rulebook for Solvency II firms. The MbC is available to PRA authorised insurance and reinsurance undertakings, the parent undertaking of which is an insurance holding company or mixed financial holding company which has its head office in the United States. The direction is effective from 31 December 2024.

On 15 November 2024, the Prudential Regulation Authority (PRA) updated its ‘Waivers and modifications of rules’ webpage by setting out details of six modifications by consent (MbCs) relating to insurance business that are being offered for the first time, or which are updates to existing MbCs.

The Prudential Regulation Authority (PRA) has granted a temporary modification by consent of Rules 6.3 of Chapter 6 of the Credit Union Part of the PRA Rulebook, effective 24 April 2025. This measure allows credit unions that have invested in Credit Union Service Organisations (CUSOs) to continue using surplus funds for such investments despite existing statutory restrictions that typically prevent holding subsidiaries. The PRA say that it has introduced this modification to support credit union growth and ensure long-term sustainability, recognising the benefits that CUSOs offer in facilitating development.

The Prudential Regulation Authority (PRA) has published a speech by executive director of insurance, Shoib Khan at the MarketforceLive Insurance Innovators Summit. The speech, titled Lighting the fuse for innovation in insurance, outlines the PRA’s approach to enabling responsible innovation while maintaining prudential soundness and policyholder protection.

The Prudential Regulation Authority (PRA) has published further information on the dynamic general insurance stress test (DyGIST) that it intends to run in 2025.

The Prudential Regulation Authority (PRA) has announced the postponement of the launch of the Dynamic General Insurance Stress Test (DyGIST) from the initial timeline to May 2026 intending to reduce the burden on general insurers in 2025 as they prepare to report on the new Solvency UK regulatory returns. It will also allow for more efficient use of PRA resources.

This Practice Note sets out the statutory framework under the Financial Services and Markets Act 2000 (FSMA 2000) governing the Prudential Regulation Authority (PRA)’s publication of the fact of a PRA investigation and the publication of statutory notices decisions involving supervisory interventions or enforcement action against a firm or individual, eg Supervisory Notices, Warning Notices, Decision Notices, Final Notices and Notices of Discontinuance. It further sets out the PRA’s approach to publicity under its statement of policy relating to enforcement powers and its statement of policy regarding the allocation of decision-making, and its approach to supervisory decisions. Overview FSMA 2000 provides the PRA (and the FCA) with a wide variety of investigative, supervisory, disciplinary and enforcement powers against firms and individuals who have committed breaches of regulatory rules, principles or statutory requirements. These powers are set out in Practice Note: PRA supervisory intervention and enforcement powers. Where the PRA proposes to use these powers, it must give written notice to the person on whom the power is exercised. PRA statements of policy and procedure Within

The Prudential Regulation Authority (PRA) has published a consultation paper (CP14/24) proposing changes to the basel prudential framework for large exposures (LE).The consultation paper should be read in conjunction with CP23/23 and the CP11/24. The PRA welcomes feedback until 17 January 2025.

The Prudential Regulation Authority (PRA) has published a Dear CFO letter highlighting practices the PRA has observed in relation to illiquid and structured financing portfolios across regulated firms. While the principal concerns outlined in the letter are informed by supervisory information received regarding significant risk transfer (SRT) financing activities, the PRA expects firms to consider the application of the PRA’s feedback to all relevant financing portfolios. Banks engaged in these businesses should ensure that the regulatory capital approach they adopt appropriately reflects the substance of the transactions, including the liquidity of the underlying collateral.

The Prudential Regulation Authority (PRA) has published policy statement (PS) ‘PS2/24: Review of Solvency II—adapting to the UK insurance market’ which provides the PRA’s feedback to responses received in the consultation paper CP12/23. PS also contains the PRA’s final policy in the form of near-final rules and updated near-final policy materials, including supervisory statements (SS) and statements of policy (SoP) in relation to the PRA’s proposals to deliver reforms in all the areas of the Solvency II review where the government had chosen not to legislate directly, and which were therefore for the PRA to take forward. The implementation date for final rules and policy materials reflecting policy changes set out in the PS is 31 December 2024, as consulted on in CP12/23, unless otherwise stated in the respective chapters

The Prudential Regulation Authority (PRA) has published policy statement PS5/24, Solvent exit planning for non-systemic banks and building societies, providing feedback to responses to consultation paper CP10/23 and supervisory statement SS2/24, both of the same name. Having considered the responses to CP10/23, the PRA has made changes to the final policy to further clarify its expectations. The Recovery Plans outlined in Chapter 7 will come into force on 1 October 2025. Firms are also expected to meet the expectations in supervisory statement SS2/24 by the same date.