PRA announces 2018/19 business plan

Written by Oliver Wade

09/04/2018

The PRA has set out its strategic goals for the next year, which include having in place “robust prudential standards” comprising the post-crisis regulatory regime and ensuring that firms are adequately capitalised.

"Prudential regulation, like annual reporting, is about looking both ways. This year we are turning to face new challenges – especially those related to EU withdrawal and operational resilience – while staying mindful of the lessons of the past,” PRA CEO Sam Woods said, commenting on the regulators 2018/19 business plan.

The regulator has also announced that it will “continue to adapt” to changes in the external marker and to hold regulated firms, and those who run them, accountable for meeting its standards. In order to correct and enforce this, the PRA will “seek to identify” aspects of regulation that could lead to “unintended” behaviour or outcomes. This commitment will prevent firms from taking advantage of regulatory arbitrage, such as finding loopholes to avoid regulation.

It has also said that it will be “fully involved” in reviewing that stress test results of UK insurance groups that are to take part in the 2018 EIOPA stress test exercise, contributing towards the design and delivery of the exercise.

The PRA has set a 2018/19 budget of £275m, which includes implementation, project and transaction fees of £22m. This budget reflects a £13m decrease on the 2017/18 budget.

The full business plan can be read here.

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