The Prudential Regulation Authority (PRA) has published an update to its modification by consent which allowed certain third country covered bonds under the Liquidity Coverage Ratio (CRR) Part of the PRA Rulebook to be included in Level 2A High Quality Liquid Assets (HQLA), subject to a cap on the amount recognised. The PRA has withdrawn the modification while it considers requests for clarification and technical comments received since the modification was published on 8 April 2025. Once it has completed this process it will clarify its approach. In the interim period, firms are advised that they do not need to change their current approach to recognising third country covered bonds under the Liquidity Coverage Ratio (CRR) and Liquidity (CRR) Parts of the PRA Rulebook.

Following a successful pilot exercise in 2024, the Prudential Regulation Authority (PRA), the Financial Conduct Authority (FCA), and the Society of Lloyd’s (Lloyd’s) have jointly announced changes to streamline the regulatory approval process for Lloyd’s managing agents. While the PRA and FCA will retain their statutory decision-making roles, they will make greater use of Lloyd’s assessment work. The regulators consider that increased concurrent decision-making will reduce authorisation timeframes to approximately six months, down from the previous 12-18 months, without compromising regulatory standards. This change is expected to support the growth and competitiveness of both Lloyd’s and the wider London insurance market. Further details on the revised entry process will be communicated to prospective new entrants through the usual channels.

As a result of the 2008 banking crisis, the government made a number of changes to the UK financial services regulatory structure. As part of the changes, the Prudential Regulation Authority (the PRA) was established. It is a legally distinct subsidiary of the Bank of England (the Bank) and is accountable to the Bank's Court of Directors. Both the chairman and the chief executive of the PRA are Bank executives. For more information on the structure of the PRA, see Practice Note: Prudential Regulation Authority—structure, functions and duties. The PRA has responsibility for micro to prudential regulation of firms that carry on PRA-regulated activities. The Financial Conduct Authority (FCA) is the prudential regulator for firms that do not carry on PRA-regulated activities, and is the conduct regulator for all firms that are prudentially regulated by either the PRA or FCA. The purpose of this Practice Note is to describe those regulated activities that fall within the scope of PRA regulation. PRA-regulated activities The Financial Services and Markets Act 2000 (PRA-regulated Activities)

The Pensions Research Accountants Group (PRAG) has published the Statement of Recommended Practice, Financial Reports of Pension Schemes 2026 (SORP). The SORP applies to periods beginning on or after 1 January 2026. Andy Lowe, Chair of the PRAG SORP Working Party, has stated that the updates to the SORP have been made to ensure consistency with Financial Reporting Standard 102 and current pensions legislation and regulations. PRAG will hold a free webinar on 19 March 2026, at which interested parties will be able to hear further details about the amendments to the SORP.

The Prudential Regulation Authority (PRA) has published Low Impact Amendments Consultation (LIAC) 02/25 setting out proposed amendments to its rules and policy. The proposals address: the conditional disapplication of the PRA General Provisions to give effect to the deference arrangements under the UK Swiss-Berne Financial Services Agreement; an amendment to the Transitional Measure on Technical Provisions Part of the PRA Rulebook, TMTP Calculation, Rule 5.2; an amendment to the Insurance Special Purpose Vehicle (ISPV) Part of the PRA Rulebook, Solvency Requirements, Rule 2.2A(3); and further miscellaneous amendments to the PRA Rulebook. Responses are requested by 13 November 2025, with implementation proposed for December 2025. At the same time, the PRA has published LIAFO2/25, finalising LIAC01/25 and minor updates and corrections made without further consultation.

The Prudential Regulation Authority (PRA)’s executive director for insurance supervision, Gareth Truran, has given a speech on the updated Matching Adjustment (MA) regime, which went live on 30 June 2024. Truran discussed implementation issues and potential enhancements in future, but said insurers ‘have now everything they need to use the Solvency UK reforms to support their plans for UK productive investments. The onus is now on them to make the most of the opportunity the reforms present.’

The Prudential Regulation Authority (PRA)’s head of division, London Markets, Lisa Leaman, has delivered a speech on bulk purchase annuities (BPA), in which she said the sector is continuing to grow rapidly and is poised to benefit from substantial regulatory reforms following the government’s review of Solvency II. Leaman outlines how the new Solvency UK insurance regulatory regime—in particular the reforms to the matching adjustment (MA)—aim to help insurers further invest in assets that benefit the UK economy, and how the PRA, working with industry, aims to respond to the challenges facing the sector.

feedback to responses to its consultation paper CP3/24—The Prudential Regulation Authority’s approach to rule permissions and waivers. PS12/24 also contains the PRA’s final statement of policy (SoP) on its approach to the granting of rule permissions under s138BA of the Financial Services and Markets Act 2000 (FSMA). The SoP takes effect on 25 July 2024.

The Bank of England (BoE) has published a speech by the Prudential Regulation Authority (PRA)’s director of insurance supervision, Shoib Khan, on the measures the PRA is taking in its oversight of the insurance sector to deliver on its new secondary competitiveness and growth objective (SCGO). Khan announced that the PRA will shortly be consulting on a package of reforms to the UK Insurance Special Purpose Vehicle (ISPV) regime and to catastrophe bond applications.

The People's Republic of China's Ministry of Justice (PRC MOJ) has published a report on the submission of the draft revision of the arbitration law to the Standing Committee of the National People's Congress for initial review. The proposed amendment significantly broadens the scope of foreign-related arbitration, allowing all cases with foreign elements to be arbitrated, rather than limiting it to specific sectors as under the current law. This marks the first substantial revision since the law's enactment in 1995. The draft aims to enhance China's arbitration framework, aligning it more closely with international standards to boost its credibility and competitiveness globally. Concurrently, a draft revision to the Maritime Law has been tabled, focusing on strengthening crew rights and addressing tanker transportation and ship financing leasing issues.

Law360 analysis: In Noble Resources v Shanghai Good Credit International Trade Co Ltd (2016) Hu 01 Xie Wai Ren No 1, the Shanghai No 1 Intermediate People's Court in a judgment dated 11 August 2017, refused recognition and enforcement of a Singapore International Arbitration Centre (SIAC) arbitral award under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards 1958 on the basis that the composition of the arbitral tribunal and/or the arbitral procedure was not in accordance with the agreement of the parties. James Kwan of Hogan Lovells discusses the decision.

Power Reactor Innovative Small Module: Also known as S-PRISM or SuperPRISM, PRISM is a fast breeding reactor developed by Hitachi GE Nuclear Energy. Hitachi GE Nuclear Energy announced in July 2012 that it had submitted a proposal to the NDA outlining the feasibility of the PRISM reactor to dispose of the UK's current stockpile of plutonium.