The Prudential Regulation Authority (PRA) has published a statement of policy and an updated “approach to policy” document explaining how it develops prudential policy in practice, alongside a separate policy statement providing feedback on responses to its consultation on the framework. The approach document is intended as a standing reference for firms and the public and applies to all PRA-regulated firms. The document sets out how the PRA advances its primary objectives of safety and soundness and (for insurance activity) policyholder protection, while facilitating its secondary objectives on competition and on competitiveness and growth, and how it applies the “have regard” regulatory principles under the Financial Services and Markets Act framework as amended, including climate-related considerations. It also describes the PRA’s policy cycle from initiation through evaluation, its approach to cost benefit analysis and stakeholder engagement, and how it engages internationally and implements international standards, including its approach to informing HM Treasury’s assessments of other jurisdictions’ frameworks. A dedicated section sets out plans for a more accessible and coherent PRA Rulebook, including a refreshed Rulebook website with combined rules and guidance search and enhanced version tracking, and an intended shift towards PRA-developed formats and terminology as EU-derived material is repealed and replaced. The PRA indicates the approach document will be updated as appropriate in response to significant legislative and other developments, and notes that aspects of the Rulebook programme will take time to embed and depend on HM Treasury decisions on repeal and replacement of assimilated law.

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