PRA is consulting on operational resilience and operational continuity in resolution. The proposals on resilience cover UK banks, building societies, PRA designated investment firms, financial and mixed financial holding companies, Solvency II firms, Lloyd’s and managing agents; and the operational continuity proposals affect all banks and dual-regulated firms that are within the Operational Continuity Part of the PRA Rulebook.
Key elements of the proposals:
- use PRA’s powers under the FS Act 2021 to apply the Group Arrangements provisions in the Operational Resilience Part to financial and mixed activity holding companies – and to make consequential changes including amending the definition of important business service and importance group business service;
- to amend a number of the rules in Chapter 8 to reflect the new application;
- to remove “CRR firms” from the title of the Operational Resilience Part as this has caused confusion as to which Parts are relevant to which firms;
- address how PRA has had regard to the need for proportionality and transparency in the exercise of its functions apply to the proposals.
PRA would bring in the changes on operational resilience with the related changes already due to take effect on 31 March 2022, and would implement the continuity rules from 1 January 2023.
Consultation closes on 14 January 2022.