The paper is based on the FSM Bill, which will implement outcomes of the government’s Future Regulatory Framework Review. The Review assesses how the UK’s financial services regulation should adapt to being outside of the EU. Following Brexit PRA has increased responsibilities, and will need to review policy areas that were previously within UK legislation.
The paper outlines that PRA will be a strong, accountable, responsive and accessible policy maker. Key aims and responsibilities include: pursuing strong standards; assuming broader rule-making responsibilities; international engagement; and facilitating secondary competitiveness and growth.
The process for policy-making will involve four phases: initiation, development, implementation and evaluation. PRA will work within a framework overseen by Parliament. It will continue to engage with HMT and will take on board the appropriate accountability, transparency and communication of its judgements.
PRA is welcoming comments on the paper until 8 December 2022. The discussion paper contains a list of questions regarding areas of particular interest for feedback which will inform PRA’s future approach to policy.