PRA has written a letter to iNEDs, who participated in its pilot programme of virtual meetings. The meetings discussed current challenges, and PRA was pleased that, in principle:
- iNEDs thought firms had reacted well to the challenges of Covid, in terms both of operational resilience and in terms of continued appropriate senior level recruitment;
- insurers were hopeful that the post-Brexit Solvency II review would be good for firms;
- PRA’s approach to global climate related financial risk was well received; and
- iNEDs found PRA’s communications helpful and that staff had been available when needed
Among the concerns and challenges raised were:
- operational controls, which are hard to police remotely, and hard to put in place large scale technological projects while staff are working remotely;
- lack of contact with firm senior management outside formal meetings;
- motivation and control over staff and practices, the longer remote working continues; and
- turnover in PRA supervisory teams.